pakistan stock exchange nameEver wondered how many stock exchanges are there in Pakistan? You might be surprised to find out the answer. Actually, the PSX which stands for the Public Sterling Exchange was one of the first exchanges in Pakistan to open up its doors to foreign investors. And it has been successful ever since.
History of Pakistan stock exchange
Other stock exchanges have also been established since then, including the Quaidabad Stock Exchange and the Karachi Exchange. But the success story of PSX can’t be missed. After all, this is the only place where investors from around the world can trade. Now, investors can trade on four different stock exchanges at the same time!
The PSX and the other two stock exchanges based in Pakistan have built an investor base through the implementation of a foreign direct investment (FDI) policy. The government encourages domestic investors to invest in Pakistan’s stock markets through a series loans, grants and rebates. Many banks and financial institutions around the world offer loans and financial support to Pakistan’s exchange. The central bank of Pakistan is actually a part of the profits of these foreign banks by their policies.
The PSX shares its profits and losses with the two major commercial banks of Pakistan,
namely Bank Mistry (CPB) and CPB. CPB is responsible for maintaining a stable exchange rate. Mistry Bank manages the LSE’s monetary and credit market operations. Both these banks do not share profits between them. The profits of the two banks are then divided between the shareholders or investors of the stock market.
The government of Pakistan has also taken a vital role in promoting the establishment and development of the LSE. Many private investors had initially put up their own enterprises, but due to lack of capital and finance, they had to shut down their businesses. This led to the emergence of many small and novice firms, which were unable to sustain. These companies later failed to compete with those of bigger companies from the country’s industrial sector. The PPSX, an improved stock exchange trading system, was introduced to improve market conditions and increase investor profitability.
Through the participation of foreign companies in its capital market,
the PSX shares its profits. The foreign investors to send money to Pakistan through the loans offered by the central bank of Pakistan. These foreign investors serve the main purpose of facilitating direct investment by foreign investors in the Pakistan stock exchange. In addition, there are other financial institutions and banks from abroad that contribute towards the overall progress of the capital market in Pakistan. Foreign direct investment is one of the most significant contributors towards the healthy development of the stock market in Pakistan.
Another important way of encouraging foreign investment in Pakistan is to allow the participation of foreign investors as members of the stock market management consortiums. This allows the foreign investors to have a stake in the running of the company. These consortiums offer shares in the companies of the consortium, with a small premium. This allows foreign investors to play a significant role in the management of the company they choose.
The third most significant step taken by the authorities to promote the growth of the stock market is the introduction of the PSX or the Public Service Systems. This system was introduced for the first time in 1986. It was initially used for government purposes, such as distribution of subsidized products or services to schools and colleges. Later on, the use of this system spread all over the country, and in fact, the world for that matter. The PSX incorporates all the aspects of thePSX including the exchange, market data, and the registration. Today, the name of Pakistan stock exchange has been widely recognized all over the world and especially in Pakistan.