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‘Pakistan has potential to compete with developed capital markets - Salman - 04-26-2013 12:35 PM
‘Pakistan has potential to compete with developed capital markets’
LAHORE: Pakistan has potential to grow and compete in the developed capital markets, said Embassy of Netherlands Head of Economic Affairs Robert Dresen during his visit to the Lahore Stock Exchange (LSE) on Thursday.
“Pakistan has all the potential to increase its economic growth given the regulations, the size of the economy, the volatility, political stability and inflation are well maintained,” he said.
LSE Managing Director and Chief Executive Officer Aftab Ahmed Chaudhry along with his staff shared the structure and performance of the capital market of Pakistan.
Chaudhry said that Pakistan’s capital market has current market capitalisation of $44 billion, which contributes 17 percent to the economy’s gross domestic product.
He underlined the factors such as the amount of wealth created in the economy through the trading of the shares is reported to be $33 billion.
Chaudhry said a free trade between Pakistan and India could yield mutual benefits and accelerate towards the economic development on both ends as Pakistan’s currency is half of the Indian Currency along with other features such as relatively low cost of production and labour available in Pakistan that produces competitive prices in the international market.
Pakistan can also benefit the Indian industry in particular to the automobile industry that is far more competitive and cheaper in India and can feed to the excessive demand of vehicles in Pakistan.
He also highlighted the various initiatives taken in building a strong mechanism and infrastructure to bring maximum transparency in the trading system thereby, safeguarding the investor’s investment.
The LSE is working as a custodian of investors and taking all relevant steps to ensure the protection of local and foreign investor’s investment, he said.
He also enlightened on the no restriction policy of the government to the foreign investors that gives a free hand to the foreigners in trading in the capital market of Pakistan.
Foreigners can acquire up to 100 percent equity in a company provided they make a proper disclosure to the documents whereas the policy of the neighbouring country such as India is rigid, he added