KARACHI, Jan 25: The Chairman, Securities and Exchange Commission of Pakistan (SECP), Khalid A. Mirza told reporters on Friday that expatriate Pakistanis and foreign potential investors in UAE, Saudi Arabia and UK had been introduced to the enormous benefits of portfolio investment in Pakistan and the ongoing surge in capital markets—with KSE-100 index hitting a 12-month high at 1527 points on Friday— could well be an indication that the message had been carried across.

The Chairman was at the head of a delegation of seven-members representing capital market regulators and stock market players, which visited Dubai, Jeddah, London, Manchester and Edinburgh earlier during the week.

Mirza told reporters that the delegation had met hundreds of non- resident Pakistanis, fund managers and potential investors. He said that over the years, the main worries of foreign investors have been the security of their investment and assurance of policy consistency. “On both those counts, the delegation was fully successful in dissipating all concerns of the investors,” he said, adding that investors were ‘pleasantly surprised’ to learn about the changed governance structure in the country.

They were informed about the numerous measures taken by the government and the SECP to enforce a strong regulatory framework to ensure protection of foreign portfolio investment and to make the corporate sector more transparent.

He said that with the 1998 freeze of foreign exchange deposits on their minds, some investors did attend the presentations with a trace of skepticism, but that got quickly washed away when they learnt that the charter of regulations had undergone a dramatic change in the last one and half years.

He said that the decision by the government to send a delegation to those countries so as to create awareness about the investment climate in Pakistan, had been well-timed. “Circumstances are now most favourable for Pakistan,” he said and listed factors that made the country a favoured destination for foreign investment: Macro economic indicators are all looking up; economy has gone through drastic restructuring and is positioned to progress in a sustainable fashion; rupee has stabilized and de-dollarization is taking place; the country has turned around and has found acceptability; generous assistance is being received; Afghanistan represents tremendous opportunities for Pakistan-based entrepreneurs; war clouds on the western borders no longer look threatening and capital market is offering values that are excellent.

Other members of the delegation were: Tariq Iqbal Khan, chairman NIT; Arif Habib, former chairman KSE; Ali Ansari, CEO, AKD Securities; M.R. Mehkari, director, SBP; Ajaz Rahim (Coordinator), deputy G.M.Faysal Bank and Aqeel Karim Dhedhi, chairman AKD Securities.

The SECP chairman said that devaluation of the rupee was a major concern for some investors. They were informed about the January 1 decision by the SBP that allows exchange risk coverage on stocks. And the ability to hedge such risks at reasonable costs, went on to fuel further interest among potential investors.