Advisor to the Prime Minister on Finance and Economic Affairs, Dr Salman Shah, has said that over 7 percent GDP growth in the current fiscal year (2006-2007) and high corporate sector profits has pushed the stock market index to all time high.
He was speaking to the group of foreign equity investors at the two-day investors meeting organised by J.P. Morgan here in Lahore, a press release issued here on Thursday said.
He said the government policy of liberalisation, privatisation and deregulation has enhanced potential for foreign investment and added that the recent road show for the Sovereign Bonds received orders of over $3.5 billion resulting in 7 times over subscription. He also stated that "the Pakistan economy is driven by market forces; has the world's 4th largest work force; and a large young population, which means more production and more savings."
Addressing the visiting investors, Governor State Bank of Pakistan Dr Shamshad Akhtar in her address said, "The banking sector in Pakistan has shown remarkable and unprecedented growth. Classified as Pakistan and the Region's best performing sector its assets have risen to over $60 billion, profitability is exceptional and all time high. Non-performing loans are at an all time low, assets are in private hands and almost 47 percent have foreign shareholders."
She also said that Pakistan has huge potential for foreign investment as presently only 3 percent of the population is borrowing from banks and only 30 percent of adults had bank accounts. Earlier, J.P. Morgan's Senior Country Officer in Pakistan Reza Rahim said that "representatives of foreign equity firms have come to Lahore to meet a select group of companies listed on the Pakistan Stock Market. The meetings are being held on one-on-one basis, over a two day period, providing the potential investors an insight into the leading companies traded on the Stock Market."
Reza Rahim also said that the cash equity breaking operations, started earlier this year is a significant development for J.P. Morgan's Pakistan business, which is the only foreign firm with a corporate seat at the Karachi Stock Exchange.-PR