PSX TOP 25 COMPANIES AWARDS : Dr. Shamshad Akhtar Caretaker Federal Minister of Finance

TEXT: It is a source of great pride for me given my longstanding association with the Pakistan Stock Exchange (PSX) and the market cap companies to be honoring the Top 25 companies for 2023. I congratulate all award-winning top 25 companies. Special recognition of those companies that have continually made it on the Top 25 list!

Recognition of top achievers has been a longtime tradition of PSX. Awards are a significant gesture astheyrecognize and reward performance, encourage anenvironment of healthy competition among the corporate sector, and foster a great sense of responsibility and drive to achieve new heights of corporate governance going beyond maximization of the shareholder wealth to concern for stakeholder. Going forward PSX is advocating that companies adopt the ESG (environment, social and governance) standards to serve better the countries planet and people.

It is inspiring to note that in past few month, benchmark index at the Pakistan Stock Exchange has surged about 50%, propelling it to the historical levels of 60,000 and the market capitalization has surpassed Rs. 8 trillion, the highest level since 2021. It’s being driven by the unwavering confidence investors have placed in the market as nascent economy recovery is emerging.

The market resurgence is further being driven in anticipation of few key steps being taken both by the government and private participants. Following instrumental legal amendments, government is launching its inaugural Islamic debt instrument on PSX platform which will facilitate broader participation in the government debt securities and shape better the yield curve. We count on corporates to raise both equity and debt from PSX and contribute to creating a vibrant capital market in Pakistan.

Taking this opportunity, I would urge the Capital Market Infrastructure Institutions including PSX to pursue these synergistic efforts and leverage the latest innovations to expand the investor base in the country.

In line with corporate governance being a key selection criterion for the top 25 company’s awards, the market cap companies have benefited from the Securities and Exchange Commission of Pakistan's proactive efforts to enhance the governance structures of capital market institutions.

PSX and its alliance with the Pakistan Institute of Corporate Governance has helped in advocacy of principlesof compliance, transparency, diversity and inclusion reinforced by growing awareness of benefits of SDGs and ESG that together will be the “driving force” in a company’s growth, which in turn, leads to a country’s overall economic growth. It is true that “the corporate, economic and technology sectors go hand in hand” because what fosters the growth of the corporate sector also fosters the growth of a country’s economy.

Whether it is the business environment or the bureaucratic setup, the Caretakers aredetermined to follow a free, fair, and transparent philosophy. The economy of Pakistan, for the most part, is driven by the engine of the corporate sector. In fact, successful businesses drive growth by creating jobs that lead to higher living standards, improved quality of life, and thus, the directly contribute to prosperity of the country.

To conclude, the government strategic vision is to harness inclusive and sustainable economic growth and development, while promoting macroeconomic and financial stability. Pakistan's is launching efforts to institute an investment and business friendly regime to lay foundation for a prosperous, progressive, diversifiedand export and technology led growth driven by “public-private partnership” modelto stimulate modernization of sectors like manufacturing, environment, agriculture, health, science, real estate, et cetera.

Iurgethe Top 25 companies to continue raising the bar for excellence in corporate governance and embark on ESG which will serve to contribute to the sustainability of country and businesses.

Copyright Business Recorder, 2023