Islamabad, Jan 23: In a significant development for Pakistan’s financial landscape, the Pakistan Stock Brokers Association (PSBA) announced an unprecedented increase in stock market participation.
Over the last six months, the association registered 61,862 new Unique Identification Numbers (UINs), culminating in a record-setting December with 15,130 new accounts.
This surge brings the total number of UINs to 357,419, indicating a robust interest in equity investment among Pakistanis.
During a pivotal meeting with Syed Naveed Qamar, Chairman of the National Assembly’s Standing Committee on Finance and Revenue, and Dr. Mirza Ikhtiar Baig, a member of the Standing Committees, the PSBA discussed strategic proposals aimed at further invigorating the capital market.
The discussions underscored the necessity for a dynamic and globally competitive market to spearhead Pakistan’s ambitious economic objectives.
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Highlighting the attractive attributes of the Pakistan Stock Exchange (PSX), the Senior Vice-Chairman of PSBA pointed out the market’s appealing price-to-earnings ratio of 8.5x, which, paired with favorable dividend yields and positive economic forecasts, presents lucrative opportunities for investors.
In addition to celebrating the growth in investor numbers, the meeting addressed several key initiatives to enhance market efficiency. The PSBA proposed the introduction of investment savings accounts, modeled after successful frameworks like the RSIA in the USA, ISA in the UK, and NISA in Japan, to promote broader financial inclusion.
Further recommendations included the clarification of the term “Security” under section 37A of the Income Tax Ordinance, 2001, adjustments in jurisdictional matters, and the rationalization of tax rates for publicly listed companies. These measures aim to establish consistent, long-term fiscal policies that will nurture the capital market’s development.
The PSBA’s proactive stance on these issues received a positive reception from Chairman Qamar, who expressed his support for advancing these proposals to the appropriate legislative bodies for potential enactment. Dr. Baig also reiterated the significance of these developments in fortifying the capital market’s role in economic growth, benefiting both stakeholders and the government.
The meeting concluded on a high note, with the PSBA expressing gratitude towards the committee’s leadership for their support and commitment to financial sector enhancements. This dialogue marks a promising step toward realizing a more inclusive and prosperous economic future for Pakistan, reflecting the collective resolve to elevate the nation’s financial ecosystem.
