Monday, October 2, 2023

Bank Alfalah- The First Market Maker for Debt Securities in Pakistan

Recently, in a ceremony held at Pakistan Stock Exchange PSX Trading Hall, PSX and Bank Alfalah signed an agreement at making the Bank Alfalah as a first commercial bank in Pakistan to be designated as a title of Market Maker for Debt Securities at the PSX.

Bank Alfalah will perform the market-making activities for the various debt instruments such as the Government Debt Securities like T-Bills, Sukuks, and PIBs. The Market Makers perform their crucial role of providing the liquidity and depth to the market through continuously quoting the two-way prices, like their bid and offer, by helping the investors in securities, to buy or sell them.

CEO of PSX, Farrukh H. Khan and Bank Alfalah President and CEO Atif Bajwa at the ceremony signed the agreement. Chairman PSX Sulaiman S. Mehdi, Group Head of the Treasury and Capital Markets, Bank Alfalah Mr Ali Sultan, board members of PSX, and senior management of both the organizations were also present at the ceremony.

PSX CEO, Farrukh Khan also remarked, “The growth of the debt markets is surely an important strategic objective of the PSX and very critical for the economic growth of our country, Pakistan. So, in-line with the recent regulatory changes that were introduced by PSX and SECP, I am very glad that the Bank Alfalah has been approved as the first market maker of the debt securities at the Stock Exchange”.

He further said, “It will surely be a new chapter in the growth of the debt markets, and thereby ensuring a deep, liquid, and a transparent secondary debt market in the country, Pakistan. It will benefit both sides as of issuers and the investors”.

CEO of Bank Alfalah Atif Bajwa said, Bank Alfalah is highly overwhelmed and would like to thank PSX and SECP for their continuous efforts in developing and promoting and helping out the capital markets of Pakistan. While sharing the same vision, we all believe that a well-developed capital market is significant from both sides as issuer and from the perspective of investor also.

He further said, “At the present time, the domestic market is primarily focused on the bank loans for their financing requirements. It needs to be complemented through capital market instruments just as an alternative and effective way of financing mediums. Corporates should also be encouraged in order to tap capital markets and so that the borrowers can easily diversify their sources of funding, and investors can also have many options for their investments”.

Mehjabeen Qasim
Mehjabeen Qasim
Business Journalist at Startup Pakistan

Related Articles

Latest Articles