Over 61,000 New Stock Market Accounts Opened in 6 Months: Pakistan Stock Brokers Association

The Pakistan Stock Brokers Association (PSBA) has reported the creation of over 61,000 stock market accounts in 6 months. In a press release issued on Wednesday, the PSBA said 61,862 new Unique Identification Numbers (UINs) were registered between July and December 2024. This brings the total to 357,419, with December alone marking an impressive 15,130 new accounts—a record high for the month. In a meeting with Syed Naveed Qamar, Chairman of the National Assembly’s Standing Committee on Finance and Revenue, and Dr. Mirza Ikhtiar Baig, Member of the Standing Committees of the National Assembly, Chairman PSBA thanked Qamar for the meeting to discuss proposals related to capital market development. He expressed the view that a vibrant, efficient, world-class capital market is essential for Pakistan to achieve its ambitious economic growth. During the meeting, the Senior V-C PSBA highlighted the attractive volumes of Pakistan’s capital market. With the historically high price-to-earnings multiple of 8.5x, as compared to the current one for the Pakistan Stock Exchange (PSX), along with market outlooks, attractive dividend yields, and positive economic indicators, there is a promising opportunity for investors. The members of the PSBA Board also expressed their views on various matters and suggested measures to bring further improvement in the capital market. The PSBA also emphasized the significant growth in total Unique Identification Numbers (UINs) during the period of July to December 2024, which saw an increase of 61,862, bringing the overall total to 357,419. December 2024 alone recorded a remarkable addition of 15,130 UINs, marking a high for the month. The CEO of PSBA presented proposals to Chairman Qamar, to remove distortion/anomaly regarding the definition of the term “Security” & starting of its holding period with reference to section 37A of the Income Tax Ordinance, 2001. It was also proposed to allow investment savings accounts similar to RSIA accounts in the USA, ISA accounts in the UK, and NISA accounts in Japan aimed at promoting financial inclusivity. Other proposals put forth include the settling of jurisdiction issues in the council of common interest, rationalization of tax rates for companies listed on the stock exchange, consistent & long-term tax policies for the capital market, and the recently presented Tax Law (Amendment) Act, 2024. After listening to these suggestions, Qamar assured PSBA to extend full support for taking them to the right forum for possible implementation the same. Dr. Baig added that the growth of the capital market will be a success both for its stakeholders and the Government. In closing, the PSBA delegation thanked the Chairman of the National Assembly’s Standing Committee on Finance and Revenue for the meeting and expressed great optimism in his good authority for the support & commitment to enhancing the financial sector.