The Karachi Stock Exchange (KSE) is one of the best performing share markets in the region as the benchmark KSE-100 index has grown by 51 percent in FY07 with a net gain of 770 points.
This was stated by the Advisor to the Prime Minister on Finance, Revenue and Economic Affairs, Dr Salman Shah while addressing the members of Karachi Stock Exchange here on Friday. He said that the country's economic growth continued during the last five years with an average growth rate of seven percent per annum.
"Pakistan attracted foreign investors during the last few years and got record foreign direct investment, which has now reached at $8 billion during the last fiscal year", he said and added that highest foreign exchange reserves, record remittances and record portfolio investment at the country's equity market were some very positive signs for the continuous growth of country's economy.
He said that increase in interest rates would not affect country's economy negatively as the interest rates are much higher in many countries. The State Bank of Pakistan has adopted this policy to control inflation and to control the forex reserves of the country.
He said that the world appreciates that Pakistan government has taken many measures to keep peace in the country, which boosted the foreign investor's confidence in this country.
"Record inflow of foreign investment which has reached at $8 billion last year, showed the foreign investor's trust over the government efforts regarding keeping in the country", added.
"We held successful road shows in different countries in Asia, Europe and the US to showcase the country's equity market globally, which tremendously attracted the foreign investors to invest here", he said.
The country's equity market is witnessing fresh foreign investment with new IPOs as new companies are being listed at the country's stock exchanges. He said Pakistan is 6th largest populated country in the world and the young generation is 60 percent of its total population as 100 million people of the country are under 25 years of age. "We have fourth largest labour force after India, China and the US", he said and added, "we have to utilise this labour force for the development of the country".
He mentioned that Pakistan could not grow during the last thirty years due to lack of planning. He pointed out that the Korean economy was only 50 percent of the Pakistan economy in 60s which is now 700 percent higher than Pakistan's economy. "It is only because of the economic systems which the two countries followed", he said.
Shukat Tarin, Chairman, KSE in his welcome address said that the KSE had become one of the most emerging markets in the region and its capitalisation has reached to $4 trillion in 2007.
The ready volume grew by 51 percent while the futures volume increased by 15 percent, he said. He said that the demutualisation process of the KSE is under way and hopefully the share market will witnessed some strategic investors by the end of this year.
The chairman of Securities and Exchange Commission of Pakistan Razi-ur-Rehman, Acting Managing Director KSE Yaqoob Memon, Chief Manager Operations Haroon Askari, directors and a large number of KSE members were present on this occasion.