Access to cheap capital through PSX sought for SMEs

A senior official of Faisalabad Chamber of Commerce & Industry urged that small and medium enterprises (SME) sector must be provided easy access to cheap capital through Stock Exchange to grow and earn profit from the fast growing economy of the country. "Availability of cheep capital is imperative to transform SME into the big industrial or commercial entities and this objective can be achieved only through Stock Exchange," said FCCI Senior Vice President Mian Tanveer Ahmed, speaking at an 'Awareness Session,' organised by the Pakistan Stock Exchange (PSX).
He noted that Faisalabad is the third important industrial, business and commercial city of Pakistan. "Its economy is dominated by textile sector that is contributing 45 percent share to the total textile exports of Pakistan," he said, adding that it ranked second city to Karachi in terms of revenue generation.
Mian Tanveer underlined the importance of Stock Exchange, saying it is a barometer to measure the economic strength of the country. He said economists could easily determine the health of any economy through its stock exchange in addition to assessing future trends in a specific economy.
"Growth of the vibrant city Faisalabad is directly linked with its SME sector," he said, citing that soon after the inception of Pakistan, the investors began their businesses as cottage industry which developed into SMEs before these were emerged as mega industrial giants of the country. He said role of SME sector is still appreciative. He emphasised on focus on SME sector as future growth is directly dependent on it.
Pakistan Stock Exchange Assistant Manager (Operation) Naseer Javaid gave an overview of Stock Exchange in Pakistan. He said the PSX has decided to open the doors of capital market for SME sector. He said that industry or commercial units with investment of Rs 200 million could appear on the main board of the stock exchange and in this connection they are arranging awareness sessions throughout the country. He further said there are 3 million SMEs that are contributing 30 to 40 percent share in the GDP while their contribution in national export is around 25 percent.
"Benefits of the capital market can be availed by SME sector with the help of Stock Exchange and we are here to clarify the queries and apprehensions of this sector," he said. The PSX official also spoke in detail on Succession Planning, Tax Credit, Raising Long Term Low-Cost Capital, Enhance Public Credibility/ Profile, MSSCI-Index, Share Compliant Models, Balance Sheet Optimisation and Liquidity issues, etc. Later, FCCI SVP Mian Tanveer Ahmed offered thanks and also presented FCCI shield to the PSX Assistant Manager Operation Naseer Javaid. The latter also reciprocated by presenting a souvenir to the former.