Message from Chairman, Divestment Committee of Pakistan Stock Exchange

It gives me tremendous pleasure to see that positive economic framework and dedicated hard work paid dividends. It provides great satisfaction to see the result of untiring efforts of Divestment Committee members of Pakistan's Capital Market to be able to successfully conclude the divestment process of PSX.
This process needed the vision and will of leadership to make it happen and that leadership was provided by the Chairman of the Securities and Exchange Commission of Pakistan (SECP), Mr. Zafar Hijazi. His guidance and perseverance helped the Divestment Committee in all the steps of the divestment process. Acknowledgement and thanks are also due to the Honourable Finance Minister, Mr. Muhammad Ishaq Dar, representing the strong support of the Government of Pakistan towards this historic endeavour. I must also gratefully thank the teams of Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan (NCCPL), Central Depository Company of Pakistan (CDC) and major market participants from the stock brokerage industry for supporting the Divestment Committee in achieving this milestone.
It was at the end of February - 2016 that I was elected to chair the Divestment Committee. Today I can proudly say that my team's efforts have come to fruition by reaching a Share Purchase Agreement with strategic buyers for divestment of PSX shares within a timeframe of 10 months. This has been a great run for all of us for which I am truly appreciative.
The Chinese consortium submitted the highest bid for a 40% stake in PSX at Rs 28 per share on December 22, 2016. The said Consortium comprises of three Chinese exchanges, ie China Financial Futures Exchange Company Limited, Shanghai Stock Exchange and Shenzhen Stock Exchange, and two local Financial Institutions, ie Pak China Investment Company Limited and Habib Bank Limited. The Consortium thus provides an ideal combination of companies which can significantly contribute towards development of PSX and the market in general.
The successful completion of the PSX divestment process is a historic event in Pakistan's capital market that would provide a window for both local and foreign exchanges to access corresponding markets leading to a much needed increase in the investor base. Secondly, technological developments will foster introduction of newer trading platforms which would ensure faster trade execution and handling etc. Thirdly, the partnership of Chinese exchanges would also create platforms of cross-listing opportunities for local companies. And lastly, but not the least, the divestment would see the introduction of new financial products including derivatives which the country lack in a big way.
In the end, we can all look forward to new beginnings with today's strategic milestone being a beacon of hope and a starting point for our capital market to be more interactive and engaging on a global scale.