Mergers & acquisitions: Shamshad for enforcing strict banking policy regime

Having registering significant number of mergers and acquisitions (M&As) in the country's banking system in last several years, Pakistan needs to tighten banking policy regime to enforce discipline in mergers and acquisitions, former Governor State Bank of Pakistan (SBP) Dr Shamshad Akhtar said.

She was speaking at the 3rd Pakistan Mergers and Acquisitions Conference 2019, organized by TerraBiz here Thursday.

"We have to remain very dynamic in M&As as the foreign partners [usually] are opportunists and looking how unbanked market we have to explore," she added.

She said Pakistan has infrastructural financing gap of $450 to $500 billion with phenomenal untapped retail market.

"So, if we were to be tough and enforce stricter banking policy regime and minimum capital requirement, we are going to be enforcing the discipline that will lead to proactive M&As which will be good for stability and competitiveness of the market," Dr Shamshad maintained.

She said M&As of banks in Asia is an enormous business that generates momentum after happening of all good and bad things.

Director IBL Group including Searle, IBL and IBL Healthcare Ltd, Rashid Abdullah shared a growth story of Searle Pakistan.

Dr Umer Taj, Executive Teaching Fellow Behavioral Decision Science, London School of Economics and Political Science talked about making strategic M&A decisions. He said Pakistan has very well-developed banking and finance system, adding that the country's ease of doing business is improving. "Role of Pakistani Diaspora must be streamlined," he added.

International keynote speaker Andrew Stotz through a live video cast shared his views on how to value any company in the world.

During the conference, a panel discussion was held on achieving growth through M&A. Ayesha Aziz, CEO Pak Brunei Investment Co, Ali Jameel, CEO TPL Corp Ltd, Nadeem Amjad Khan, Deputy CEO Al Baraka Bank (Pakistan) Ltd and Adil Ahmed, Director & Co-Founder Symmetry Group highlighted the role of M&A in achieving growth.

Dr Inayat Hussain, Executive Director, Banking Supervision Department, State Bank of Pakistan discussed the role of the SBP in banking sector M&A.

Earlier, Adnan Rizvi, Partner KPMG Pakistan shared the aims and objectives of the conference while Ali Akhai, Chairman Martin Dow Group delivered the opening remarks and Hamza W Hashmi CEO presented the address of welcome.