Various national and international prospective buyers have shown interest in buying sates in Pakistan Stock Exchange (PSX), and the government hopes upgradation of South Asian country to Emerging Market by an International agency will attract more foreign buyers.
Recently, the divestment committee of PSXs shareholders extended the deadline for submitting Expression of Interest (EOI) to August 15 in the backdrop of Britain’s decision to exist the European Union, and a recent decision by MSCI to grant Pakistan the Emerging Market status from Frontier Market status.
Pakistan’s upgradation is expected to attract more foreign buyers as its economy shows signs of improvement, growing 4.7 percent in the financial year that ended June 30.
PSX is selling 40 percent of its shares to Strategic Investor or Investors and local financial institutions as required under the Stock Exchanges act, 2012.
PSX was launched in January this year after combining all the three stock exchanges, including the benchmark Karachi Stock Exchange (KSE-100) .
Pakistan’s three leading bourses – Karachi, Lahore and Islamic Stock exchanges – last year signed an agreement to merge the three stock exchanges into a single entity in the backdrop of the global trend of consolidation and integration of stock exchanges.
The integration is expected to help reduce market fragmentation and create a strong case for attracting strategic partnerships necessary for providing technological expertise and assistance.
Pakistan Stock Exchange will help bring all investment at a one platform and will provide an increase capital market outreach.
In July last year, Bloomberg News included Pakistan among the world’s top 10 performers over the preceding 12 months with an advancement of about 16% in the benchmark KSE-100.
Pakistan’s economy has stabilized since the government of Prime Minister Nawaz Sharif took over in 2013.