Message from Chairman, PSX

I extend my heartiest welcome to the delegates of the PSX-SAFE IPO conference 2016-2017. Now in it's sixth year, this premier event is already noted for its positive outcomes. In the last few years (since 2014), out of 13 IPO's in the Pakistan Capital Market, the genesis of 8 can be traced directly or indirectly to the previous PSX-SAFE conferences. That is a laudable achievement which deserves recognition.
We are living in a rapidly changing world where both challenges and opportunities for businesses - large and small - are increasing. In the developed economies with aging population the challenge is one of diminishing demand growth. In the developing economies with rising middle class, the challenge is supplying higher quality goods to increasingly aware consumers who have more choices than ever before, thus raising the bar on competitive product/service positioning, pricing, branding and above all, customer satisfaction.
As a result companies face the choice of competing either on quality and superior branding perception or on price, driven by scale of production. In both cases, capital requirements increase. As the saying goes 'it takes money to make money.' As we go forward, where Pakistan's economic growth accelerates, survival of enterprises will depend on how much capital they can muster in order to leverage it for growth.
However, the transition from small to big business enterprise and from big to bigger business doesn't happen automatically even in a rapidly growing economy. It requires vision, technical and managerial capability, aggressive marketing strategy and equally important, significant financial resources. For firms that can see the future opportunities unfolding before them but need more than internally generated cash flows or short-term bank borrowing, long-term funding via stock market is a relatively attractive proposition.
It is in this context that the PSX-IPO Summit plays an important role of providing an opportunity for private companies and their sponsors to understand various aspects of listings on the stock exchange. Under one roof, sponsors of private companies are able to benefit from the experience and expertise of financial industry experts as well as representatives of companies that have listed successfully and found innovative and sustainable financial solutions to facilitate high growth rate. Sponsors will also become aware that with opportunity comes responsibility in form of better governance standards, fair treatment of all shareholders and the regulatory landscape in which listed companies operate.
It is now an established trend around the world that businesses are required to operate with much greater transparency and cater to wide variety of constituencies ranging from customers, sponsor shareholders, suppliers, to employees, various regulatory agencies, trading partners and be seen as socially responsible and environmentally friendly companies that endeavour to satisfy this broad range of stakeholders. These aspects provide significant competitive advantages which enable them to sustain above average corporate performance and provide superior return to their owners. By listing on the stock exchange, the company learns how to manage these critical aspects, thus increasing future growth and success which benefits all stakeholders and ultimately the country itself.
I extend my congratulations to SAFE for contributing so positively and consistently to the development of Pakistan's capital market in general and bringing companies to list in particular. My best wishes for continued success of all participants of the PSX - SAFE IPO Summit 2016-17.