'Public sector companies could be made profitable entities'

Lahore Stock Exchange Managing Director and Chief Executive Officer, Aftab Ahmad Chaudhry has emphasised that loss-making public sector entities could be transformed into profit-making ventures provided these are listed on the stock exchanges after necessary restructuring.
While briefing Lahore Economic Journalists Association (LEJA) members on Friday, Aftab said LSE has planned to send its management representatives in the listed companies' annual general meetings to get direct information regarding the companies financial and other affairs.
He tried to dispel the impression that capital markets in the country did not have enough depth for new companies, saying investors confidence is the only hurdle in the growth of capital markets. Quoting the example of PIA, he said that if other state owned enterprises like Pakistan Steel Mills would also be listed on the capital market, its financial health could be gauged easily. He noted that state owned enterprises have major contribution in Pakistani stock markets and government also earning handsomely due to their listing.
Highlighting the present bourse's situation, CEO LSE pointed out that trading volume of all three stock exchanges is representing an alarming situation, which needs political and economic stability. He stressed that there is a dire need of government will and investors' confidence to restore the lost glory of the bourse.
He apprised that LSE has initiated a number of programmes to protect the investors' rights and ensure transparency. It is the first bourse in Pakistan, which has set up a regulatory division and nominated a Chief Regulatory Officer to redress the complaints of investors. Earlier, on most occasions it has been observed that during the arbitration process only brokers are benefited and this step would bring transparency in dispute resolution process.
Aftab also said that the bourse is also establishing an online database, which would be available on LSE web-site and would indicate brokers' financial health. In addition, technology up gradation was underway to ensure transparency and accountability in the LSE.
He informed that LSE has urged Securities and Exchange Commission of Pakistan to set up an audit trail system, so that all transactions could be completed in a transparent manner. He pointed out that the LSE has proposed to set up an automated system, which would send a short message to investor in acknowledgement of their transactions. Speaking about the market potential, he pointed out that there is a need of confidence only as due to highest ever mark-up rates the companies could manage cheap finances as compared to the banking sector. Responding to a question, he said all these initiatives would be implemented in next couple of months except where SECP's approval is required.