Qudsia Bano

For achieving stable economic growth, Pakistan will need to generate 18 to 20 million new jobs each year, said M Shahid, Manager of KP Securities (Pvt) Limited. During an interview with WealthPK, he gave an honest assessment of the current state of the Pakistani economy.

Q: How may your firm be impacted by changes in the economic and political landscape as well as other external factors, and how are you handling them?

A: The capacity of an organisation to promptly recognise and react to changes in the internal and external environment is a key factor in determining both its stability and profitability. Change is inevitable, and an organisation's ability to adapt to unanticipated market changes determines its sustainability.

The performance of an organisation is affected by elements such as economic and political direction of a country, how rival businesses are faring, cliental, etc. The current political situation in Pakistan is affecting the performance and profitability of companies.

Q: What do you think the market sentiment is amid economic slowdown?

A: Market sentiment is rather depressed due to high inflation, tight monetary and fiscal policies, devastating effects of floods coupled with charged political atmosphere.

The stock market fared well last year, but companies’ profits are dwindling this year due to imposition of taxes, especially the super tax, on corporate earnings. 

Q: Who makes your company's investing policies, and how do you aim to protect the value of your investment portfolio from possible market risks?

A: The company's directors are committed to implementing a strong corporate governance system in conformity with the Listed Companies Code of Corporate Governance Regulations, 2019, issued by the Securities and Exchange Commission of Pakistan. It is the company’s top priority to ensure compliance with the applicable laws and regulations. Our future strategies include constant augmentation of the company's diverse capital sources and broadening the investment portfolio to capitalise on sustainable enterprises that generate reliable returns.

Q: What are causes of economic instability in the country, and how can we handle them?

A: Countries primarily depend on their natural resources and asset base to trigger economic growth. Pakistan is rich in natural resources, including oil and gas, significant copper and ore deposits, as well as enormous coal, salt, and gemstone mines. It also has strong manufacturing sectors like textiles, steel, cotton, sugarcane, sports and leather. We are fortunate to have a youth population of roughly 63%.

The Asian Development Bank reports that 50.7% of people who are 15 years of age or older are employed. The proportion of women in total employment is relatively low. Pakistan should annually add 18-20 million new jobs for the young people to put the economy on a sustainable growth path.

Company’s profile

KP Securities (Pvt) Ltd is a forward-thinking and dominant service provider of premium brokerage and financial services. It was established on June 20, 2011, under the Companies Act, 1984.

According to the Brokers Agents Registration Rules, 2001, KP Securities is registered as a securities broker with the Securities and Exchange Commission of Pakistan. In the last 10 years, KP Securities has established a solid reputation by offering its customers the best services possible.

Credit : Independent News Pakistan-WealthPk