Emerging Capital Markets Development: A Case Study of Pakistani Equity Markets

Syed Furqan Haider Shamsi, Nighat Bilgrami-jaffery

Abstract


The purpose of the study is to trace and review the growth and
development of the Pakistani Equity Market. The capital markets in
Pakistan has been undergoing a major restructuring programme. Number of
measures have been taken to liberalise investment procedures and
encourage capital formation through stock exchanges, enlarge size and
depth of capital markets. We are witnessing globally a remarkable pace
of change from a social and economic perspective. Capital markets being
driven by the floods of competition and technology are experiencing so
many new challenges and changes inducing them to incline more towards
complex structures which would not have been considered possible few
time back. Capital markets play an important role in the economic
development of emerging capital markets. These markets are an important
and efficient conduit to channel and mobilise funds to enterprises, and
provide an effective source of investment in the economies they serve.
Well functioning markets ensure that both corporations and investors get
or receive fair prices for their securities. Their role for mobilising
savings for investment in productive assets is acute which subsequently
enhance the country’s long term growth prospects. Therefore we can
deduce here that their role is like a major catalyst for transformation
of the country’s economy into a more efficient and competitive emporium
within the global workroom.

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DOI: https://doi.org/10.30541/v39i4IIpp.963-978

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