Prime Minister Shehbaz Sharif has emphasized the government’s commitment to boosting investment in the country, stating that his team was making all-out efforts to create a business-friendly environment that would attract investment.
His declaration came during a meeting at the Prime Minister’s House in Islamabad, which was focused on boosting investment and increasing capacity of the federal ministries. Addressing the participants, the prime minister instructed the authorities concerned to set up a steering committee that would oversee these efforts, adding that he would personally chair the committee.
He impressed upon the participants the government’s unwavering commitment to enhancing the country’s business landscape, which marks a significant moment in Pakistan’s economic narrative. It was revealed during the meeting that the Public Private Partnership Authority had approached consultancy firm Kearney for bringing in experts to help increase investment as well as improve the federal ministries’ capacity.
Prime Minister Shehbaz Sharif vows to turn Pakistan into an investment magnet; shows his government’s ‘unwavering commitment’ to enhancing Pakistan’s business landscape
It is pertinent to mention here that Kearney is a globally renowned firm, which is particularly active in the Middle East. Representatives from the firm, who also attended the meeting, briefed the prime minister on the ongoing consultations with the Pakistani authorities. The premier was informed that Kearney had consulted with 15 federal institutions and identified 97 priority projects during this process.
The representatives said the firm would soon develop an action plan with the collaboration of the Pakistani government for sustainable development. Additionally, they would assist with the privatization of state-owned enterprises (SOEs), further enhance the public sector enterprises’ regulatory framework and attract more investors, the meeting was informed. It needs mentioning here that the PML-N government has always aimed at attracting both local and foreign investors, boosting economic growth and development.
The announcement regarding the steering committee’s formation under the chair of the premier highlights the government’s a practical approach to address investment challenges. This will streamline the decision-making process and at the same time ensure that initiatives undertaken are monitored closely and implemented effectively. Moreover, the government can expect greater coordination among various ministries, which will increase their capacity to attract and manage investments in a much better way.
Kearney likely to develop an action plan for sustainable development; to assist govt with privatization of state-owned enterprises; to enhance regulatory framework
The government’s recent initiatives to boost investment climate have not been limited to structural changes alone, as there have been important policy reforms as well, which aim at increasing investor confidence. One of the examples is the streamlining of regulatory procedures. This has resulted in significantly reducing bureaucratic hurdles that discourage potential investors. Moreover, the government has simplified the process for obtaining business licenses and permits under the ease of doing business initiative, and has implemented transparent and consistent regulatory frameworks.
Another important point at the meeting was the privatization of state-owned enterprises (SOEs) that have been making losses for years. With this initiative, the government aims to hit two birds with one stone: reduce its financial burden and encourage participation by the private sector. This will result in better management of resources. It is also likely to improve efficiency of those enterprises, which will ultimately contribute to economic growth.
PSX announces transition to One-Share Lot
The Pakistan Stock Exchange (PSX) also pitched in a significant initiative to attract and facilitate investment when it announced that is has transitioned to the “One-Share Lot” system. This reform is in line with the government’s strategy to implement investor-friendly policies. The PSX’s transition to a One-Share Lot system, which began on April 19 and was executed in phases, brings the stock market in line with international best practices.
Previously, the minimum marketable lot sizes for listed companies varied, based on their share prices, hence creating complexities for investors. By standardizing the lot size to a single share, the PSX has made stock market transactions more accessible and straightforward for investors. This transition is expected to yield various benefits, including increased retail participation. Smaller lot sizes make high-priced stocks more affordable for individual investors, hence increasing trading volumes as well as market liquidity.
By getting rid of the need for odd lot markets and reducing associated trading discounts, the One-Share Lot system promotes a more inclusive and equitable trading environment. Therefore, this reform being dubbed an important step towards democratizing stock market participation, which allows investors with limited capital to build more diversified portfolios.