Pakistan Stock Exchange (PSE), combining all the three stock exchanges in the including the benchmark Karachi Stock Exchange (KSE-100) will become operation from January 1, 2016, Finance Minister announced.
He made the announcement at the launch of All-Share Islamic Index during a visit to the KSE on Nov. 18.
Pakistan’s three leading bourses – Karachi, Lahore and Islamic Stock exchanges – this 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 its latest report on Pakistan in July this year, Bloomberg New 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 and the economy posted 4.26 growth in the year that ended on June 30.
The launch of Islamic Index will help sustain development of Islamic capital markets in Pakistan.
“The size of global Islamic financial market has crossed the threshold of $1.6 trillion and the government assures its fullest support in the development and introduction of Islamic Financial System,” Dar was quoted as saying by the English daily Dawn.
There is a growing demand of Shariah compliant products and services in Pakistan, a pre-dominantly Muslim country with more than 180 million population.