ISLAMABAD: On Sunday, Finance Minister Ishaq Dar expressed his worries regarding the Pakistan Stock Exchange (PSX), which was once recognized as one of the top-performing stock markets in the region.
In a meeting at the Federal Bureau of Revenue (FBR) headquarters in Islamabad, Minister Dar addressed a joint delegation from the PSX and the Mutual Funds Association of Pakistan (MFAP). He assured them that the upcoming budget would address their concerns about the lack of investors and promised measures to encourage investment in the country.
The delegation included Farrukh Hussain, the Managing Director and CEO of PSX, and Ahmed Ali, the Chief Financial Officer. The MFAP was represented by Mir Adil and Arif Qadri.
Accompanying the finance minister were Minister of State for Finance Dr. Aisha Ghaus Pasha, Special Assistant to the Prime Minister (SAPM) on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Reforms and Resource Mobilisation Commission (RRMC) Chairman Ashfaq Tola, FBR Chairman Asim Ahmad, and other senior officials from the finance ministry and Revenue Division. State Bank of Pakistan (SBP) Governor Jameel Ahmad also attended the meeting.
During the discussion, the MFAP representatives emphasized the growth of Shariah-compliant mutual funds and proposed the introduction of short-term Shariah-compliant sukuk. They also suggested measures to promote mutual funds in the upcoming budget. The PSX representatives highlighted the decline in market capitalization over the past six years and emphasized the stock market’s significant contribution to the national exchequer. They presented proposals to encourage more people to invest in the stock market.
Minister Dar expressed hope that the PSX would reverse its current trend and regain its position as one of the top-performing stock markets in the region.
The PSX’s KSE-100, a benchmark for market performance, had been Asia’s top-performing index in 2016, bringing joy to thousands of investors who expected the prosperous period to continue. This led to an influx of fresh investments.
However, 2017 turned out to be a nightmare. Equity-based funds experienced negative returns ranging from 10% to 20%, while brokerage houses faced low trading volumes that impacted their earnings.
Overall, the KSE-100 Index registered an absolute negative return of 15.34% during the year, equivalent to a negative return of 20% in dollar terms.
Published in PakWeb, June 5th, 2023.
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