KARACHI, April 14: A three-day (April 14-16) workshop on "Capital market operations" began on Wednesday. National Investment Trust chairman Tariq Iqbal Khan inaugurated the workshop. The event has been arranged by ACE Securities, a corporate brokerage house.

The NIT chairman said that his impression was that discussions were being held between the representative bodies of mutual fund industry in Pakistan and that in India for extending cooperation in training.

He said that Indian mutual funds were allowed to invest 20 per cent of their funds outside the country and added that for the cross-border investment of funds, a regulatory framework had to be in place that might provide the enabling environment.

He said that mutual fund industry in Pakistan had come a long way and according to some reports, new mutual funds valuing Rs15 billion were in the pipeline. "Now except for a few ICP Mutual Funds, all are trading at a premium to their net asset values (NAVs)," said the NIT chief, adding that a couple of years ago, opposite was the case. Mr Khan suggests that the government should create pension funds, so that with the passage of time, its burden on the budget on that account diminishes.

ACE Securities chairman Iqbal Ismail said that successful investment was a product of knowledge and added that efficient markets, which were by definition fair and transparent, could not even be imagined without widespread availability and dispersal of knowledge.

He observed that TV channels were broadcasting (relating to stock market) what was to be expected the day following. Experts, he said, were being summoned to forecast what was essentially not capable of being forecasted.

"And yet these people make statements with such convictions and authority," said the ACE Securities chairman, adding with almost a comic touch: "If medicines were to be prescribed on what the doctor feels will be the state of health of the patient rather than accurate diagnosis assisted by clinical methods, half the population will be wiped off. This is precisely what's happening to the market."

But he also said that the astounding growth of market in the last decade and a half had compelled attention to be focused on trading, settlement and development of physical infrastructure. "As a result we now have a fairly sound risk management structure and efficient trading based on electronic technology."

Attock Cement deputy general manager Irfan Imanullah gave a presentation on "Sectoral analysis of the cement industry", while Dr Muhammad Naeem, head of finance and economics, College of Business Management, talked about "Long-term and short-term price linkage between the stock markets of Pakistan and India and their major trading partners".