Finance Minister Dr Shamshad suggests listing of govt debt securities at PSX

ISLAMABAD: Dr. Shamshad Akhtar, the Federal Minister for Finance and Revenue on Friday said that the securities market can play a vital role in the development of debt market through the listing of Government debt securities on Pakistan Stock Exchange (PSX) .

Speaking at the inauguration ceremony of the Centralized Gateway Portal, Dr Akhtar said that the issuance securities through public auctions at PSX will facilitate retail participation, provide greater transparency, channelize savings and promote debt market in Pakistan, Said a press release issued by SECP here.

Attracting new investors in the capital market should be one of our primary objectives going forward, which requires coordinated efforts from all Capital Market Infrastructure Institutions (CMIIs), as well as the market intermediaries, especially the brokerage houses, under the guidance of SECP.

In addition to the demand-side aspects linked to market liquidity, she suggested to concentrate on the supply side simultaneously. In this regard, it is vital to channel efforts towards increasing the number of Initial Public Offerings (IPOs) on Pakistan Stock Exchange (PSX).

A greater supply of securities in the market shall enhance liquidity, enabling the generation of higher trade volumes. She asked the SECP and PSX to work aggressively for creating awareness, making the listing process efficient and facilitating businesses in utilizing the stock exchange for capital formation. PSX should maintain an IPO pipeline to ensure maximum results and again targets should be assigned in consultation with the CTIs.

Dr Shamshad asked the SECP and Capital market institutions to collectively review the costs of investing in the capital market, particularly to ensure that maintaining an account is not expensive enough to disincentivize small investors.  She emphasized on keeping digitalization with international trends.

She said it is important to attract entrants in the newly created sub-category of online-only brokers, with the aim to drive greater competition in the industry.