PTCL sale to Etisalat to boost linkages: minister

KARACH — The sale of the PTCL to Etisalat would lead to strengthen the country's vertical and horizontal linkages, said Omer Ayub Khan, minister of state for finance.

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Published: Tue 19 Jul 2005, 10:57 AM

Last updated: Thu 2 Apr 2015, 4:42 PM

A Press release issued here yesterday said that all sides should work together for the market development and promotion of the investment in the country.

He was speaking after he visited the Karachi Stock Exchange and met with the bourse's board of directors and members of the exchange. He was accompanied by Dr Salman Shah, adviser to the prime minister on finance.

Omer Ayub Khan, minister of state for finance, briefed the members about the present economic policies being persuaded in the country. He also stated that keeping in view the geographical location of Pakistan, it is becoming a hub of economic activities in the region. We are providing a threshold opportunity so that we can provide an access for the Central Asian countries. He said that present environment is fully conducive to investment, which is reflected by various economic indicators including growth of GDP rate, foreign exchange reserve, current account deficit and the size of development budget. He hoped that all these indicators would lead to further infrastructure development and more investment will flow in the country.

The adviser to the prime minister on finance termed the timing of the visit very critical and said that stock exchanges were important institutions to provide liquidity and a market place for the buyers and sellers of the assets already invested in transparent and efficient manner which are time ingredients of the market economy. They reflected growth of the country's economy. He said that liquidity was an important market feature and it was very important that the market continued to the flourish.

He said that keeping in view the importance of the liquidity and financing, he had constituted a committee comprising all stakeholders to determine the level of total quantum of finance requirement and to suggest the sources of financing, including development of different instruments to address the liquidity issue as well as other possible models of financing like in Turkey. He said that the committee had been directed to give its report within a week's time and propose a long-term solution.

Expressing the need for an efficient risk mitigation systems which should inspire confidence of both local and foreign investors, he said that there was also a need to reduce the transaction cost besides which should be competitive and comparable to international standards. He also emphasised the need for further growth of the market by increasing the size of the market, listing of new companies and expanding the retail investors based so that the business opportunities were available to all the people in the country. For this purpose we have to enforce strict discipline and self-regulation. He hoped that the short-term problem of the liquidity would be settled very shortly and we should concentrate more on long-term infrastructure development of the market.

Welcoming the adviser and the minister, the chairman KSE expressed the hope that it would have a positive impact on the market. Highlighting common objectives of the government and the domestic private sector, he said that promotion of investment was the basic factor. He said that it was the basic objective of the exchange to give equity and justice to all market participants, including the small investors. Talking about recent market fluctuations, he said that it was common to all bourses around the world, adding that it should not be a cause for concern.

Appreciating the government's economic policies, he said that they were in the interest of promoting investments.

Briefing the visiting dignitaries about the growth and development of the KSE, he said that it was in the interest of all stakeholders that the market should perform well and all investors get a fair value for their investments in an efficient and transparent manner. He said that the bourse was committed to modernisation.

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