The Pakistan Stock Brokers Association (PSBA) has announced a significant increase in stock market participation, with over 61,000 new accounts opened in just six months. According to a press release issued on Wednesday, 61,862 new Unique Identification Numbers (UINs) were registered between July and December 2024, bringing the total number of accounts to 357,419. December 2024 alone saw a record-breaking 15,130 new accounts, the highest monthly addition to date.
In a meeting with Syed Naveed Qamar, Chairman of the National Assembly’s Standing Committee on Finance and Revenue, and Dr. Mirza Ikhtiar Baig, a member of the Standing Committees of the National Assembly, the Chairman of PSBA expressed gratitude for the opportunity to discuss proposals aimed at developing the capital market. He emphasized the importance of a vibrant, efficient, and world-class capital market for achieving Pakistan’s ambitious economic growth targets.
During the meeting, the Senior Vice Chairman of PSBA highlighted the attractive features of Pakistan’s capital market, including its historically high price-to-earnings multiple of 8.5x compared to the current multiple for the Pakistan Stock Exchange (PSX). He also pointed to favorable market outlooks, attractive dividend yields, and positive economic indicators, which present promising opportunities for investors. Members of the PSBA Board shared their views on various issues and proposed measures to further improve the capital market.
The PSBA also reiterated the significant growth in UINs during the six-month period, with December 2024 standing out as a particularly strong month. The association emphasized that this growth reflects increasing investor interest and confidence in the market.
The CEO of PSBA presented several proposals to Chairman Qamar, including addressing anomalies in the definition of the term “Security” and its holding period under Section 37A of the Income Tax Ordinance, 2001. Other suggestions included introducing investment savings accounts similar to RSIA accounts in the USA, ISA accounts in the UK, and NISA accounts in Japan to promote financial inclusivity. Additional proposals focused on resolving jurisdiction issues through the Council of Common Interest, rationalizing tax rates for companies listed on the stock exchange, establishing consistent and long-term tax policies for the capital market, and reviewing the recently introduced Tax Law (Amendment) Act, 2024.
After hearing these suggestions, Syed Naveed Qamar assured the PSBA of his full support in taking the proposals to the appropriate forums for consideration and possible implementation. Dr. Baig also expressed optimism, stating that the growth of the capital market would benefit both stakeholders and the government.
The PSBA delegation concluded the meeting by thanking the Chairman of the National Assembly’s Standing Committee on Finance and Revenue for his support and commitment to strengthening Pakistan’s financial sector.
