Caretaker Prime Minister Mohammadmian Soomro said here on Friday that the capital market in Pakistan had played a positive role in the development and expansion of the economy. Like other sectors of the economy, he said, the capital market had also done remarkably well, "although there is a lot of room" for further improvement.
He was talking to Karachi Stock Exchange (KSE) Chairman Shaukat Tareen, who called on him at the Prime Minister Secretariat. The Prime Minister said that the capital market in Pakistan had witnessed rapid progress through structural reforms both in its institutional set-up and operational matters.
He said that although the government has an important role to play in shaping the legal, institutional and business environment but major responsibility still rests with the corporate sector to achieve a higher level of corporate governance.
Soomro emphasised that high standards of corporate integrity and excellence are of fundamental importance for the development of any capital market. He called for need to focus on achieving highest standards of corporate governance, transparency and professionalism to strengthen investors' confidence.
He said that although companies had been able to raise some capital but more efforts were needed to encourage the companies to raise capital through fresh equity offerings, which would serve to deepen the market and develop the retail investor base.
The Prime Minister said that capital market provides the people with investment opportunities and the companies to raise funds for expansion and development for further investment. He said that reforms introduced by the Securities and Exchange Commission of Pakistan (SECP) to provide transparency and better governance of the capital market needed to be recognised and appreciated, as it would provide solid foundations to attract more investors both locally and internationally.
He said that the SECP has been actively pursuing a capital market reform programme, geared towards development of a modern and efficient corporate sector and capital market based on sound regulatory principles that provide impetus for high economic growth.
The reforms introduced in the fields of risk management, governance and transparency have contributed significantly towards the growth and development of capital market and building investor confidence, he added.
Shaukat Tareen briefed the Prime Minister about the activities of KSE and said that continuity of reforms, which cover the capital market and insurance, also would result in increased economic growth and better transparency and would enable Pakistan's capital market to attract both domestic and foreign capital.
Soomro congratulated Tareen for the positive role played by KSE in encouraging investors, and said that the government would continue providing complete support to KSE.