Source: Daily Times

KARACHI: US Ambassador to Pakistan, Anne W Patterson, Thursday visited Karachi Stock Exchange (KSE) and held a meeting with its management and board of directors.

US Consul General Kay L Anske and Press Attache Elizabeth O Colton were also present on the occasion.

Speaking on this occasion, she said that Pakistan stock market has a ‘huge’ upside potential and she was keen to be at the premier stock exchange of Pakistan.

“I was preparing for the job and I picked up the Wall Street Journal one day and there was a front page article on ‘terrorism in Pakistan’ and on the business page there was a story on KSE being the most successful stock exchange in the world. So I wanted to visit this stock exchange (KSE) which is the symbol of Pakistan’s growth and of hopefulness in the economy”, she said.

“I had also heard a lot about the distinguished and impressive management the stock market had here,” she said. Earlier, Managing Director KSE, Adnan Afridi, gave a presentation on country’s economy, stock market and performance of Pakistan’s premier bourse.

He said Pakistan has experienced a sustainable growth and can continue on the path provided there is continuity and longevity of economy policies. “It is one of the most open investment regimes in the world with 100 percent repatriation of profits that has helped in attracting investment,” he said.

Adnan pointed out that financial services and telecom sector were deregulated with the help of strong, professional regulators adopting global practices and benefiting from favourable demographics.

He said KSE was the top performer in the emerging stock markets of the world with a growth of 8.73 percent during 2008. Taiwan is the second with 5.69 percent followed by Bangkok and Singapore.

He said the growth rate of KSE is over 35 percent per annum for the last ten years as its market capitalisation has grown to $75 billion.

He said KSE was heading for de-mutualization which will make it a member of developed stock markets of the world.

Responding to a question about the prospects of long-term investment in the backdrop of security concerns, Adnan pointed out that despite ups and downs and political uncertainty in the country, foreign investment has continued to flow in.

Other members of the board of directors told US Ambassador that there were big upside expectations, once the security situation is improved. What they (fund managers) are worried is the falling rupee and lack of economic road map.

US Ambassador was told that KSE has the average multiple of 10 to 11 whereas neighboring markets including India has 17 while Bangladesh 23.

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Tags: ambassador, investment, Karachi Stock Exchange, Pakistan, US, Wall Street