KARACHI, Dec 17: Prime Minister Shaukat Aziz said here on Saturday that reforms introduced by the government and coordination between the stock exchange and the government have led to an upsurge in the capital market.

“The government is committed to further reforming the capital market and for this purpose it is launching new initiatives such as general depository receipts, private equity, voluntary pensions, venture capitals, multiple listing and real estate investment trusts. The real estate fund will be finalized in four weeks,” Mr Aziz told a delegation of the Karachi Stock Exchange which called on him at Governor’s House on Saturday. The KSE delegation was led by Mohammad Yasin Lakhani.

The prime minister said broad-based structural reforms, consistency, continuity and transparency in policies and procedures had led to progress in the capital market. He pointed out that corporate profits were all time high and foreign investment had increased.

He asked KSE members to adopt best practices prevailed in the world, concentrate on high quality research, make efforts for dissemination of research, induct more professionals in their companies and focus more on IPOs.

Mr Aziz said the government was aggressively pursuing the privatization programme and considering to enter the international equity market by taking the best public sector enterprise in the international stock market through general depository receipts.

The KSE members appreciated reforms introduced by the government. They said cement, automobile, fertilizer industries were particularly doing well.

Mr Aziz also talked to a delegation of the Overseas Investment Chambers of Commerce and Industry, including members of the American Business Council. Sindh Governor Dr Ishratul Ibad and Chief Minister Dr Arbab Ghulam Rahim were also present.

The prime minister called upon foreign investors, businessmen, industrialists and entrepreneurs to avail opportunities of investment in Pakistan.

He said the country this year was expecting foreign direct investment of $2 to $3 billion.

He maintained that a stable exchange rate, low inflation, strategic location and availability of cheap but hardworking labour made Pakistan an ideal country for investment.

Mr Aziz said the process of reforms would continue. “We are constantly reviewing and improving our policies in line with our philosophy to restrict the government’s role to a facilitator and enabler only to promote business activities in the country.

He said the government was committed to provide equal opportunities to local and foreign investors.

Welcoming the appointment of George Bush senior as UN’s special envoy for Pakistan’s earthquake relief efforts, the prime minister said the step reflected the confidence the country enjoyed internationally.

He said the government was focusing on poverty alleviation in rural areas. “Our policies will benefit the rural population “, he observed.

He claimed that the purchasing power of the middle class had enhanced which was reflective of the healthy economy of the country.

Terming transparency and efficiency hallmarks of government policies, he said promulgation of the Fiscal Responsibility Law would ensure greater transparency in dealings and restrict borrowing to a specified limit.— APP