Govt keen to develop secondary debt market: Dar

The Finance Minister Senator Mohammad Ishaq Dar Monday said that the government is keen to develop the secondary debt market with particular focus on the retail segment.
“Trading of government securities at the stock exchanges of Pakistan will encourage participation of small and private investors. The increase in depth of secondary debt market will also contribute in the development of secondary corporate debt market”, he said during the presentation made to him by the Securities Exchange Commission of Pakistan (SECP) at the Finance Ministry here. The Finance Minister said that a vibrant secondary debt market will pave the way for development of primary debt market and channelizing the savings of small investors to the government schemes through the stock exchanges.
The Finance Minister said that although the government securities are being actively traded over the counter (OTC) market, the same is not visible at a single platform.
The availability of trading data at a single platform will enhance the visibility of secondary debt market, thereby encouraging foreign investment.
Tahir Mehnmood, Acting Chairman SECP informed the Finance Minster that their has been an increase of 17% in the incorporation of new companies since 1st July 2013 as compared to the same period, last year.
In addition nearly 2000 companies which were dormant since many years have recently regularized themselves by filing over due returns.
The Finance Minister said that this is reflective of the confidence of the business community in the pro-business policies and the economic initiatives taken by the PML-N government including the incentives scheme  launched recently by Prime Minister Nawaz Sharif
The Finance Minister directed SECP to draft necessary regulation for setting up a Real Estate Regularity Authority to regulate the Real Estate Sector at par with modern jurisdiction.
The Finance Minister said that the government had decided to dedicate  two Sectors in Islamabad where overseas Pakistanis could purchase plots of land for which payment would be made in Foreign Currency.
The Overseas Pakistanis, the Finance Minister said should have the comfort that their investment is secure and the process is transparent.
The Finance Minister was briefed about the progress made so for listing of T-Bills and Pakistan investment Bonds in Stock Exchanges.
The Finance Minister decided that T-Bills and Pakistan Investment Bonds would be listed, quoted and traded in the Stock Exchanges in February 2014 after completing the necessary legal and corporate formalities.
The Finance Minister appreciated the initiatives being taken by SECP in simplification of regulations rules and processes to ensure transparency promote and facilitate the investor confidence.

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