Pakistan Stock Exchange to be launched tomorrow

Pakistan's benchmark Karachi Stock Exchange will become the single trading entity in the country from Monday after merging with two other bourses, with the chairman of the unified body expressing hope it would attract foreign investment.

The creation of the Pakistan Stock Exchange (PSX) was a milestone in Pakistan's economic history and would lead to creation of a fair, efficient and competitive capital market, chairman Zafar Hijazi told reporters.

With the creation and launch of the PSX, Hijazi expects the country to become a regional hub for investors.

Karachi Stock Exchange will merge with two other bourses - Lahore and Islamabad Stock Exchanges - in the country to become PSX, the single trading entity in the country.

"It is an historical development and from Monday Pakistan will have a single bourse which should attract foreign investment as well as make us a regional hub for investors," Hijazi said.

Entitlement certificates of the PSX were distributed among brokers of the LSE and ISE yesterday and a mock session of trading was also conducted.

Hijazi said that PSX would become a listed company and 40% of its shares would be offered to foreign investors and 40% to allocated listed brokers.

Reports said that under the plan, the PSX would become a listed company on the exchange with 20% in an initial public offering (IPO).

The Karachi Stock Exchange set up in 1947 with just five listed companies and a capital investment of 37 million rupees has remained the busiest bourse in the country, with much of its trading relying on foreign investment in recent years and is also a major player in the regional market.