According to the Pakistan Economic Survey 2015-16, the Savings-Investment gap for the year 2005 to 2016 had been negative (except, for year 2010-11). That disappointing rates of domestic savings is a big obstacle for increase in domestic investments in financial markets of Pakistan.
We acknowledge the SECP’s Capital Market Development Program (CMDP) (2016-2018) and highly appreciate all strategic targets that follows as under:
legal and regulatory reforms;
structural reforms and developmental initiatives at the SROs;
reforms for capital market intermediaries;
product and market development;
reforms for issuers in the capital market;
reforms for investors’ access, awareness, protection and facilitation;
and improving image-building and compliance with international standards.
However, the current facts and figures highly demand other entities to support SECP’s program to make it a success.
Currently in a country of 200 million or more we have merely 20k investors effectively engaged in the stock market, not even the registered investors of approx 400k are fully active. These disappointing figures obviously are reflecting on poor public awareness. Current domestic and foreign investors are mostly interested in a few blue chip stocks only. On the listing side we witnessed only six new companies listed themselves on the Pakistan Stock Exchange (PSX) during FY2015-16. So far we have seen that not even demutualisation resulted in increased market depth, in terms of investors or trading instruments.
Institute of professional excellence believe that all the people related to financial markets can contribute alot in the area of investor’s awareness, by genuine awareness programs through courses, seminars, workshops, books and other mediums.
This institute is established in the year 2017 with the same vision and objective of creating new generation of investors. Both the founder directors of the institute (IPE), are very much ambitious and they are working on a comprehensive range of products that would serve the same purpose.
It is an obligation of every patriotic professional to contribute his/her share in this regard.