Need for investor education stressed at event: PSX marks start of investor week with gong ceremony

KARACHI: The Pakistan Stock Exchange (PSX), along with 78 other exchanges across the world, marked the start of the sixth World Investor Week (WIW) 2022 through a ‘gong ceremony’ on Tuesday.

The WIW is being held in exchanges around the world from October 3 to 9, 2022. The PSX is holding the event for the second consecutive year.

The World Federation of Exchanges (WFE), of which PSX is an affiliate exchange, partners with the International Organisation of Securities Commissions (IOSCO) in holding the WIW.

Present at the gong ceremony were representatives of leading academic institutions, professional bodies, and securities brokers, among others. The week-long activities held in connection with the World Investor Week are aimed to promote the importance of financial literacy and to raise awareness about investor education and protection. The objective is to encourage financial inclusion and foster learning opportunities for investors.

The gong was struck by Chairperson of the PSX Board Dr Shamshad Akhtar in the presence of senior officials of PSX and heads of leading brokerage houses. The gong was struck to mark the beginning of the week-long activities of WIW, and to open the trading day.

Speaking on the occasion, Dr Akhtar said, “In Pakistan, lack of financial education and awareness is a matter of deep concern. Deficiency in familiarity with long-term investments and knowledge of choice of suitable and diverse products, investment options, and stock market perceptions are all holding back the capital market development.

“Given the lack of financial literacy and investor education, Pakistan’s financial penetration and diversification is a challenge and stifles saving and investment opportunities for the nation. Investor education relevance is self-evident in Pakistan but it needs to be targeted and reinforced by policies by public sector and action by private sector.”

She further stated, “Out best bet is to capitalise on growing middle-income segment and demographic dividend in the economy which both require dedicated investor education. About 19.3 percent of our country falls in the age group of 15-24 years while 34.7 percent is around 25-54 years of age, whereas our women’s contribution to the economy could grow with improved financial access. Over half of our population including our youth needs to be targeted and educated on financial management, savings and investment.”

She added, “Against the entire backdrop of importance of investor education and protection, I am pleased to state that Pakistan Stock Exchange is taking numerous steps to raise investor awareness as it holds in-person sessions, webinars and third-party collaborations regularly to impart basic financial skills. Disseminating financial education is a service not only benefitting the people, and the economy but the country as a whole as well.”

In his address of welcome, the chief operating officer of PSX, Nadir Rahman, said: “PSX welcomes you all to mark the World Investor Week being held in collaboration with World Federation of Exchanges. This week-long event highlights the importance the PSX attaches to financial literacy and investor education. PSX has held more than 200 sessions throughout the outgoing fiscal year on investor education and awareness for academic institutions, government bodies, professional bodies, and diverse chambers of commerce.”

He added, “Given the current economic environment where high inflation persists, it is imperative to understand the basics of savings, investing, financial planning and investor protection so that members of the general public can prudently invest. Taking (benefit from) this opportunity whereby educational institutions, capital market participants and brokerage houses are present here, we would like to reach out to all of them to work with us to create the necessary opportunities for everyone to learn the basic skills of financial management and investment for their own benefit and for the benefit of the whole economy”.

The event concluded with a panel discussion that included Talib Karim, the president of the Institute of Business Management (IoBM); Mobashar Sadik, CEO of Institute of Financial Markets of Pakistan (IFMP); Ms Hina Dhedhi, chairperson of AKD Securities Limited; and Shahid Ali Habib, CEO of Arif Habib Limited.

During the discussion practical steps were spelt out that must be taken to increase financial awareness and education so as to generate interest and encourage the general public, especially the youth, to invest in the capital market.

A presentation on the portal ‘My Portfolio’ and a briefing on ‘Knowledge Centre’, a portal about investor education, were delivered by Ms. Raeda Latif, the chief marketing and business development officer at PSX.

Copyright Business Recorder, 2022