Pakistan Securities and Exchange Commission and PSX join forces for Financial Literacy Week: Empowering Future Investors in Pakistan
Akef highlights the role of financial culture in economic growth
Munther Naqvi
KARACHI: Akif Saeed, Chairman, Securities and Exchange Commission of Pakistan (SECP), highlighted the crucial role played by the Pakistan Stock Exchange (PSX) in promoting financial literacy and expanding investor outreach. “PSX’s steadfast commitment to improving communication and financial literacy across the country is commendable. Promoting financial literacy is an ongoing journey. As financial markets evolve, our efforts must evolve as well, equipping investors to make informed decisions and navigate the complexities of today’s financial environment.”
Saeed was speaking as the chief guest at the launch of the World Investor Week (WIW), organized by PSX. The event began with the traditional bell-ringing ceremony to signal the start of the day’s trading session, with the KSE-100 hitting a new high. Akif Saeed rang the bell in the presence of PSX Chairman, Board Members and Acting CEO, along with PSX senior management and heads of brokerages and asset management companies (AMCs), marking the official start of the week-long Global Investor Week.
Under the auspices of the World Federation of Exchanges (WFE), of which PSX is an affiliate member, and in cooperation with the International Organization of Securities Commissions (IOSCO), PSX is hosting WIW 2024 from October 7-13. This year’s theme is “Ring the Bell for Financial Literacy.” This marks the fourth consecutive year that PSX has organized this event. Akif Saeed was warmly received by the Chairman and Managing Director of PSX upon his arrival.
Saeed highlighted the importance of financial culture in today’s rapidly developing markets. “Financial literacy is indispensable, especially in an era when financial markets are developing rapidly and becoming more accessible. Informed financial decisions are not only essential for individual wealth creation but also for the economic stability of the country. By promoting financial literacy, we empower individuals to manage… better manage their finances, understand investment risks, and seize opportunities in capital markets which in turn promotes greater investor participation and contributes to building a more resilient and dynamic economy.
He also pointed to Pakistan’s demographic potential, noting that “Pakistan’s tech-savvy youth represent an unparalleled opportunity for our capital market. With approximately 67% of the population under the age of 30, we have a large pool of potential investors.” Who are eager to explore wealth creation and financial security As more people turn to digital platforms for their financial activities, it is our responsibility to provide them with the knowledge and tools they need to succeed in the world of investing.
Saeed urged stakeholders to collaborate during this crucial week, saying: “As we begin this week of learning, sharing and collaborating, I encourage everyone to seize this opportunity to spread knowledge and empower individuals within our communities. This effort extends beyond financial institutions; It requires collective action from all stakeholders committed to the growth and development of our economy. By working together, we can strengthen the foundations of our financial markets, instill investor confidence, and pave the way for sustainable economic growth.
He concluded his remarks with a call for continued efforts towards financial inclusion: “The journey towards financial inclusion and literacy continues. Through continued efforts and collaboration, we can create a future where more Pakistanis are financially empowered, and able to make sound investment decisions – decisions that not only benefit them personally, They also contribute to our nation’s broader economic progress.
Speaking at the event, Dr. Shamshad Akhtar, Chairman, Pakistan Stock Exchange (PSX), noted, “Every year, PSX celebrates World Investor Week to emphasize the importance of financial literacy, both for the public at large and for investors and the public. Capital market stakeholders in particular. PSX works continuously throughout the year to promote financial awareness through various platforms such as personal sessions, workshops, courses and webinars. These initiatives highlight the importance of saving, investing, and understanding how to navigate the stock market, ultimately benefiting investors.
She also noted, “In the last financial year, we conducted financial education and awareness sessions in more than 80 institutions across the country. A total of 162 investor awareness sessions were held, educating more than 15,000 individuals – including students, corporate employees and people from various sectors – on the basics of financial literacy through in-person sessions and workshops. In addition to our efforts on the ground, we also participate through digital platforms, where PSX regularly conducts webinars in collaboration with brokers, mutual fund companies and other key institutions. These efforts aim to increase the country’s savings rate and direct those savings to productive sectors.
Nadeem Naqvi, Managing Director and CEO of PSX, in his welcome address, expressed his gratitude to the SEC Chairman for his presence at the event. He highlighted the “Sahoolat Account” service, which allows investors to open an online trading account in just a few minutes. By choosing a stock broker and transferring funds online, investors can start trading within hours. This showcases the remarkable technological advancement made by Pakistani capital market institutions (PSX, CDC and NCCPL) in digitizing the entire account opening, trading and settlement process.
Naqvi also stressed the ease and convenience of investing in the stock market, while emphasizing the importance of risk assessment and personal financial planning. He advised that only a small portion of an individual’s savings should be invested in the stock market, and he encouraged investors to gradually learn about the companies in which they invest, as well as the growth journeys of these companies as they expand and flourish.