Finance Minister Ishaq Dar has formally launched the stock trading of government securities at stock exchange here on Tuesday. The trading of securities—T-Bills, Sukuk and Pakistan Investment Bonds—will be carried out at different stock exchanges through designated accounts. The minister expressed his hoped that the trading of the securities will enhance the investment and saving opportunities to the public and different investors of equity markets. He said that the government has been working to streamline the fundamental dynamics of the national economy with infrastructure development and financial resources.
These developmental measures will provide sustainable channels to the country for reforming its economy and strength in the future. In this regard, Infrastructure fund has been suggested to be launched in the future upon which the government is working seriously. The trading of securities have been finalized by State Bank of Pakistan (SBP) with all technical and financial feasibilities for floating T-Bills, Sukuk and different bonds in the equity markets mainly to raise funds from the public and equity traders besides banks. The issuance of securities will be part of the present government policy to increase the investment and saving trends among the public which will likely to have positive impacts on inflation as well.
Analysts said that trading in securities will create competition among banks which were seemed reluctant to invest into government papers at times when the interest rates kept at lower level. The government papers will no more be safe-haven for the banks to drive their solid income through various terms T-Bills, Sukuks and different bonds, however, they will have to compete with different investors in the future. The issuance of securities in the equity markets may keep the yield rate tighten due to increasing participation of the investors and stiff bidding process, analysts said. Similarly the government will have good opportunity to generate funds from investors besides banks whereas the number of securities could be increased through expected positive response from the public going forward.