Bank Alfalah has now become the country’s first commercial bank designated as a Market Maker for Debt Securities at the Pakistan Stock Exchange (PSX).
While addressing the ceremony of signing an agreement between Pakistan Stock Exchange and Bank Alfalah at PSX trading hall, Farrukh Khan, the Chief Executive Officer of Pakistan Stock Exchange said that development of debt market is one of the strategic objectives of Pakistan Stock Exchange as it is must for the economic development of the country.
CEO of Pakistan Stock Exchange said that in line with the recent regulatory changes, introduced by the SECP and PSX, this is appreciable news that Bank Alfalah has become the first market maker of debt securities at the Exchange. This will usher in a new chapter in the growth of the debt market, thereby ensuring a deep, liquid, and transparent secondary debt market in Pakistan, this will benefit, both issuers and investors.
He further said that Bank Alfalah has a long-standing commitment to the capital market and is one of the few banks with a presence in both the brokerage and asset management industries. This will help to develop Pakistan’s debt market to a regional and international level. He said that it is required that all stakeholders should play an active role as this is a significant milestone in the development of the debt market in the country.
At present, the domestic market is primarily focused on bank loans for financing requirements. This needs to be complemented by capital market instruments as an alternative and effective financing medium.
The CEO of Bank Alfalah said on the occasion his company thanks SECP and PSX for their efforts to develop and promote the capital market in Pakistan.
Around 550 companies are registered on Pakistan Stock Exchange out of which, 25 are debt securities. Their total value is Rs 7.47 Trillion. If the volume of debt securities increases to the extent of 10 to 20% then the capital of the market may reach trillions of Rupees.