PRIME Policy Report is a monthly publication that provides actionable intelligence at both micro and macro levels of the economy. Each report is segmented into: Business Climate Review, Market Analysis and bird-eye view of major Economic Indicators. It is a one stop information hub for business leaders, SMEs, Corporations, trade commissioners, MNCs, Institutions and Individuals aspiring to understand the policy dynamics, business prospects and interpretations of key economic indicators.
An efficient matching of saving and investment play a fundamental role in the economic growth of a country. One of the prerequisites for this is a well-functioning stock market which provides a platform for the mobilisation of savings and then allocates these savings for investment through a variety of debt and equity instruments. An efficient stock market requires innovative products, large number of buyers and sellers, competition, transparency, less regulatory burden and less government intervention.
Despite being best in the region, our stock market is unable to perform its primary function of mobilising funds from domestic and foreign savings and diverting them towards public investment. Analysis presented in this study will highlight some of the challenges which inhibit our stock market from playing its due role. Since three regional stock markets of Karachi, Lahore, and Islamabad have now merged into a single stock market earlier this year, the study will also shed light on the extent to which this merger can be helpful in overcoming these challenges.