KARACHI, June 17: Securities and Exchange Commission of Pakistan Chairman Dr Tariq Hassan said on Friday that in a rapidly globalising world, Pakistan was ripe with lucrative opportunities for foreign investors.

Talking to members of the American Business Council of Pakistan here, he said the Pakistan government’s policy of openness to foreign investment was attracting large number of foreign investors and entrepreneurs.

The SECP chairman said the commission was playing a crucial role of regulating the corporate sector, capital market and non-banking financial sector at this take-off stage of Pakistani economy.

“As the regulator of an emerging market the SECP’s regulatory philosophy is based on the principle of developmental regulation,” he maintained.

He gave a brief overview of the government and SECP’s initiatives in improving corporate governance and introducing reforms to make procedures simple and transparent for ensuring a level-playing field with all desired controls.

Dr Hassan said the SECP followed a non-discriminatory approach towards foreign companies. He said: “There is no restriction on the extent of foreign ownership stake, no limit on holding shares for trading purposes and non-residents are exempted from tax on income from government securities and instruments of redeemable capital. Further, there is no control on the sale of securities purchased in Pakistan by non-residents.”

Dr Hassan informed the ABC members that the Pakistan Intitute of Corporate Governance would become functional by the end of this month and would be involved in conducting various training, seminars and workshops to disseminate knowledge and information about the practical aspects of good governance.

He said SECP’s future reforms and initiatives included demutualization and integration of stock exchanges; combating financial crimes; promoting corporate social responsibility and socially responsible investing; and extended cooperation with regional regulators.—APP