KARACHI: The Pakistan Stock Exchange (PSX) announced the inauguration of its regional office in Khyber-Pakhtunkhwa by holding a gong ceremony at the PSX Trading Hall in Karachi, a statement said on Wednesday.
This is a significant development for the capital market of Pakistan; whereby, the PSX will now be in a position to specially focus on this region in terms of meeting the needs of the business community, industry and investors regarding the capital market.
Earlier, the north-western province was covered by the PSX through its northern regional office in Islamabad.
Khyber-Pakhtunkhwa is integral and central to Pakistan in terms of its industrial zones, business hubs, and centers of trade of the northern part of the country.
It constitutes numerous types of industries, businesses and trades, which contribute significantly to the national exchequer. With the increasing industrial and trading activity taking place in the province, a significant need was felt by the PSX to reach out to fulfil the requirements of the business community of the area to channelise their liquid resources for investment and for raising capital to expand their industrial and business base.
The PSX intends to fulfil this need in the near future through its representation in Khyber-Pakhtunkhwa.
By opening an office in KP, the PSX asserts its presence in the region by utilising its resources to spread investors’ awareness and education and to educate businesses about the benefits of listing on the exchange.
The PSX will; thus, increase its outreach in the northern areas of the country. It will also be facilitating or expediting the growth plans of businesses and companies (with the potential for listing) through capital raising via equity or debt issuance.
The bourse will be in a position to facilitate the raising of capital for numerous infrastructure projects by the government and for corporates and businesses who need capital to expand. The time is right for the PSX to enter the provincial business and industry sector and fill the gap for financing and investment needs of the investors and business/industrial community.
PSX managing director Farrukh Khan, said: “It is a proud and exciting moment for [the] Pakistan Stock Exchange to open a representative office in KP province. KP is a province, which is of great importance to Pakistan and its economy. Trading and business activity has been a forte of this region since ancient times and the region was a key part of the famous silk route. The current KP government has made a lot of efforts and progress to improve the economy and business environment in the province.”
“With the increasing business opportunities in the province, we are confident that the PSX’s presence and facilitation in KP will support the expansion of business and investment activities in the province. Khyber-Pakhtunkhwa is a region, which remains untapped from both savings and investments perspective. Hence there is a lot of potential to develop the capital markets ecosystem in KP.”
Khan also said: “There are excellent businesses, which will benefit from raising capital and listing at [the] PSX, while savers and investors will benefit from being able to access a wide range of investment products.”
“Many PSX brokers already have offices in KP and we look forward to working with them and others to help increase their footprint and activities in KP. I see great potential and mutual benefit in this collaboration for the businesses and investors in KP and the PSX capital markets fraternity,” the PSX managing director said.
Khyber-Pakhtunkhwa Finance Minister Taimur Jhagra said: “I am very happy that the PSX presence in KP is now a reality. I am also pleased to announce a major IPO [initial public offering] of a KP steel company at [the] PSX. We have made this effort to create greater awareness, participation in the capital markets and financial inclusion for the investors in KP.”
“[The] SMEs will now be able to get access to capital through listing on the PSX GEM Board. Khyber-Pakhtunkhwa Chief Minister Mahmood Khan, and I appreciate the efforts of the PSX leadership and management. To the business leaders in Karachi and all over Pakistan, I would like to say that KP is open to business and investment! There are great investment opportunities in Pakhtunkhwa and I would encourage you to participate in our economic growth.”