Daily Times

KARACHI: Finance Minister, Senator Ishaq Dar, has expressed the government’s resolve to get the Companies Ordinance 2016 approved through the joint session of parliament to convert it into law, demanding companies to show their offshore assets.

The Finance Minister was addressing the participants during the signing ceremony of share purchase agreement of PSX with the consortium of Chinese exchanges and local financial institutions in Karachi on Friday. With this development PSX has become a regional capital market.

The Senate had rejected the Companies Ordinance 2016 with a majority vote last month. “We know who motivated to the rejection of the bill but the government was not ready to back down. We know two sections in the Ordinance are painful to those opposing the Ordinance; Maintenance of global assets. Those who have assets abroad are opposing the bill which was drafted with the coordination of all stakeholders”, Dar stated.

He said that there was a dire need to revamp over 30 years old Companies Ordinance in order to provide an improved competitive legal framework for the corporate sector in Pakistan. “The government does not intend to punish people but wants to give the people space so that they could get things in order at their own”, Dar added.

He announced that the government has set up the Pakistan Development Fund PDF for which some international investment institutions such as IFC and Chine Investment Fund have shown interest.

He said that government provided Rs 300 billion for Zarb-e-Azab operation against terrorists through its own resources for the sake of restoring law and order in the country.

Talking about the divestment of Pakistan stock exchange, Dar said that it was his dream to make the stock exchange the best not only in the whole country but in the whole region. “The Chinese will come with their best practices, modern trading system, technology and new products”, he said adding that deal will benefit both parties involved.

“When we took over, the stock market was at around 19,000 level but now it has emerged as the 5th global capital market with the index hovering at around 50,000 level”, the Finance Minister noted.

As the elections of 2018 are fast approaching some elements are losing sleep over the economic success of the government, but their dreams will not come true, Dar stated.

The finance minister stressed for the need to increase GDP growth ratio of the country saying that at present the growth rate at 4.7 percent, 8 years high level, while industrial growth was 6.8 percent.

“June 2014 was the calculated timeframe for the default of the country by some critics”, Dar said while referring to then prevailing economic conditions. “We were told that it would take six years to put the country back on the path of economic recovery but we did it in only three years”, he added.

Regarding the China Pakistan Economic Corridor (CPEC), the finance minister said that volume of investment has increased $54 billion mainly focus is on energy side. He reiterated that the by the end of this year the electricity load shedding will be reduced to zero.

Earlier, Munir Kamal, Chairman PSX, said that Pakistan stock market has been transformed from national to regional market. He sought guidance of the government for CPEC related trading at the stock exchange.

Shahzad Chamdia, Chairman of Divestment Committee of PSX, informed that the remaining 20 percent stakes of PSX will be offered to general public by June 2017.

Arif Habib, Chairman of Arif Habib Group, said that Consortium has acquired the stakes of PSX through competitive bidding. He stressed the need for more listing at the exchange to enhance the market capitalization.

Hu Zheng, CEO, China Financial Future Exchange, said that due to the importance of the deal the Chinese government gave its approval. “With the Silk Route it is the beginning of the new era of deepening economic relations”, Hu added.

Ashraf Mehmood Wathra, Governor State Bank of Pakistan, lauded the economic cooperation of both countries saying that no country can progress in isolation. He was of the view that the China has located the right place for investment calling it the tip of iceberg. He said that LSM sector grew by 8.1 percent in November while private sector credit growth was Rs 376 billion.

Zafar Hijazi, Chairman SECP , hoped that the Chinese consortiums venture into Pakistan capital market will bring multiple benefits for both the parties. In the wake of market reforms by the SECP and PSX this divestment will have long lasting beneficial impacts on the market, he added.

He said that the divestment will result in institutional shareholding, experienced ownership and good governance for PSX which will translate into organized and robust development of the exchange.Chinese Ambassador, Sun Weidong, also spoke on the occasions and termed the development as new mark in the all round relationship between two countries. He said Chinese will bring experience and facilitate more financial support. The CPEC was going smooth with tangible results as it is providing jobs to people of all provinces of Pakistan.