PSX holds gong ceremony to formally launch ETFs

KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday held a gong ceremony to formally mark the launch of Exchange Traded Funds (ETFs).

These ETFs are NIT Pakistan Gateway Exchange Traded Fund, UBL Pakistan Enterprise Exchange Traded Fund, Meezan Pakistan Exchange Traded Fund, and NBP Pakistan Growth Exchange Traded Fund.

The ceremony was attended by PSX Board Chairman Sulaiman S Mehdi, PSX CEO Farrukh H Khan; Securities and Exchange Commission of Pakistan Chairman Aamir Khan (chief guest), SECP Commissioner Farrukh Sabzwari, and senior management of other capital market entities.

Speaking on the occasion, PSX CEO Farrukh Khan said, “The launching of ETFs is an important development in the PSX growth story. Globally, ETFs are now probably the single largest asset class, worth over $7 trillion in market cap. So, it is imperative that we bring this innovative instrument to investors in Pakistan’s capital markets. We hope that this product will be a popular investment option for the retail and institutional investors. I would urge brokers and AMCs to produce research and educate investors about this unique and attractive investment product. This has the potential to increase share ownership and gains from the stock market to a broader segment of investors.”

In his key note address, SECP Chairman Aamir Khan said that the commission is committed to creating a more competitive and efficient playing field to ETFs by addressing tax disparities, achieving tax credit and allowing investments in ETF through Special Convertible Rupee Accounts (SCRA).

He said SECP is also taking measures to encourage more market makers to come up, increase awareness, expand the outreach of ETFs and make ETFs available not just at ready counters, but at each and every counter including Futures, MTS etc. He also announced that another set of ETFs were under approval process, demonstrating that the market and investors are anticipating growth over the near term.

Meanwhile, NIT MD Adnan Afridi said, “I am very pleased to note other asset management companies in the country have also come forward following the initiative taken by NIT to launch their ETF products. This will go a long way in providing depth to the capital markets of the country.”

The ETF is an investment product which combines the returns offered by the stock market with the diversity offered by a mutual fund. It is a cost-effective, transparent and provides diversified investment opportunities to investors.