ISLAMABAD: The Pakistan Economy Watch (PEW) on Tuesday expresses the hope that the merger of three stock exchanges of the country would improve transparency and discourage broker mafia.
The integration of three exchanges would result in some stability, however, more needed to be done to restore confidence of local and international investors in the Pakistan’s stock market, PEW President Dr. Murtaza Mughal.
Talking to Patron of Chamber of Small Traders Shahid Rasheed Butt and Chairperson Trade and Commerce Committee of Quetta Chamber Tabassum Anwar here, he said that stock market had remained on the mercy of broker mafia who would orchestrate a crisis for plunder or deter government agencies probing their wrongdoing.
Dr Mughal said that not a single inquiry had proved fruitful against the influential mafia nor the money of small investors had been returned.
The broker mafia was behind the crises of May 2000, March 2005 and 2008 which resulted in windfall for them and many of them even managed to establish banks with the help of ill-gotten money, he alleged.
He regretted the stock market crises had shattered confidence of investors, took toll on the economy, weakened currency and pushed the country (finance managers) to carry begging bowl for averting default but those responsible were never brought to the book.
Dr Mughal said that Pakistanis were operating over four million bank accounts but less than 100,000 invested in the stock market which spoke volumes about their trust in the system.
The Pakistan Stock Exchange would not be able to attract local and foreign investors unless broker mafia was eliminated, he warned.
