Capital markets in Pakistan, South Asia: regional financial integration project to be implemented in October

Regional financial integration project for developing a harmonised regulatory framework for the capital markets in Pakistan and South Asia would be ready for implementation in October 2013. Amir Raza Khan, Vice President, Capital Markets Business Unit, revealed this in a press conference about the project at the Lahore Stock Exchange on Thursday.
Managing Director Lahore Stock Exchange and General Secretary South Asian Federation of Exchanges (SAFE) Aftab Ahmed Chaudhry also spoke on the occasion. Amir Raza Khan gave a detailed presentation on the subject and said work on the project, which was conceived in a Saarc meeting, was commenced in April 2012. "Now, almost 70 percent of the job has been completed and currently we are compiling the recommendations," he said.
He further said that first advocacy moot had been planned in India (Mumbai) in first week of July. He further said foreign investors would be treated under T+3 category for the purpose of settlement against the local investors which were treated under T+1 for the same purpose. Trade Guarantee Fund is also being proposed to build the investors' confidence besides ensuring risk free transactions, he maintained.
He gave an example of Bhutan which was considering issuance of sovereign bonds in India to generate funds for developing infrastructure. Similarly, sovereign bonds could also help Pakistan's government in getting rid of funding problems for mega projects, he added.
To a question, Amir Raza Khan said the Regional Financial Integration project might not yield desired results if hurdles were created through imposing additional tariffs and non-co-operative attitude on the part of governments. Aftab Ahmed Chaudhry hoped the new government would promote economic ties and trade relations with the neighbouring countries. The stock market would only be benefited if government opened up cross border investment to provide opportunity to the foreign investors, he said. He stressed the need for putting a regulatory framework of international standard to encourage foreign investment in the capital market.