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Pakistani capital markets offer best opportunities for foreign investors


The capital markets in Pakistan offer transparency, best price and efficient execution coupled with attraction for foreigners as equity market trades at discount as compared to regional valuations. Based on PE (price earning), PBV (price by volume) and payout, the Pakistani capital markets trades at lower levels as compared to regional markets. Such attractiveness must catch the eyes of foreign fund managers to explore the opportunities offered by the Pakistani capital markets.
                                            
Mr. Shahid Naseem and Mr. Imran Inayat Butt, of the Securities and Exchange Commission of Pakistan, said this while making a presentation this at an institute organized by the US Securities and Exchange Commission in Washington, DC. The SECP strives to maintain fair, orderly and efficient markets, they said. It protects the rights of investors, facilitates capital formation and develops an efficient and dynamic regulatory framework in line with the principles of the International Organization of Securities Commissions (IOSCO).

The participants were told that the SECP’s has a vast mandate, which includes corporate sector regulation, regulating securities markets, commodities market, insurance, pension, private equity, venture capital, NBFC, debt securities trustees and rating agencies. It is also responsible for the registration and licensing, supervision, enforcement, adjudication, appellate bench, investors’ education and awareness, development of legal framework, implementation of corporate governance and AML (anti-money laundering) and administration of professionals.
                               
It was highlighted that after the 2008 stock market crash (when the index fell from 15,500 to 4,500 points), due to successful reform process led by the SECP the index has successfully recovered by almost 200%. With the recent developments on the regulatory and operational front and future roadmap, the Pakistani capital market will be comparable with developed international jurisdictions that meet the IOSCO benchmarks.

The International Institute for Securities Enforcement and Market Oversight for the past 18 years has been one of the US SEC’s flagship programs to promote the quality of securities enforcement programs around the globe, and strengthening and deepening international cooperation among securities regulators. 

This time over 180 regulators from about 73 countries and jurisdictions from around the world are having intensive training and discussions on the most significant issues of securities enforcement. The ongoing seminar is providing an opportunity to participants to brainstorm on and learn from the challenges faced by the capital markets around the globe.. It was a rare opportunity for the Pakistani regulator to address such an institute, showcase Pakistan capital market and interact with fellow regulators.

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