Pakistan Stock exchange

The Pakistan Stock Exchange (PSX) is the primary stock exchange in Pakistan, serving as a hub for capital formation and providing a platform for companies to raise funds through share offerings. Here's a detailed analysis of the exchange:

1. **History and Structure**: The PSX has its roots in the Karachi Stock Exchange, which was established on September 18, 1947, and formally incorporated on March 10, 1949. Over time, additional stock exchanges were set up in Lahore and Islamabad to cater to regional needs. In 2012, the Stock Exchanges (Corporatisation, Demutualization, and Integration) Act was passed, merging the three exchanges into a single entity known as the Pakistan Stock Exchange Limited, which began operations on January 11, 2016.
2. **Key Features and Services**: The PSX trades various securities, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). It operates fully automated trading systems and provides price discovery, liquidity, and capital formation services. The exchange is regulated by the Securities and Exchange Commission of Pakistan (SECP), ensuring transparency and investor protection.
3. **Performance and Indicators**: The KSE-100, the primary index of the PSX, recorded a significant return of 60.15% for FY2025, reflecting the performance of the exchange. The PSX has been instrumental in channeling domestic savings and foreign capital into the Pakistani economy, playing a crucial role in capital formation.
4. **Revenue and Financials**: The PSX reported a revenue of Rs. 3.114 billion (approximately US$11 million) and a net income of Rs. 1.11 billion (approximately US$3.8 million) as of December 31, 2024. The total assets were valued at Rs. 14.189 billion (approximately US$49 million), with total equity amounting to Rs. 11.439 billion (approximately US$40 million) for the same period.

In conclusion, the Pakistan Stock Exchange is a vital component of the Pakistani economy, facilitating capital raising for companies and offering investment opportunities to a broad range of participants. Its historical evolution and current structure reflect its commitment to fostering economic growth through efficient capital markets.