KARACHI: Gwadar Free Trade Zone projects, which fall under the umbrella of the China-Pakistan Economic Corridor (CPEC), could be listed at the Pakistan Stock Exchange (PSX), a move aimed at helping Chinese investors raise funds for the endeavour.
In a statement released on Monday, the PSX said it would facilitate Chinese investors – under the broader CPEC projects – in raising funds for projects to be set up at the Gwadar Free Trade Zone and get listed at the bourse.
In this regard, the statement added, the PSX and China Overseas Ports Holding Company Pakistan (Pvt.) Limited (COPHS) officials signed a Memorandum of Understanding (MoU). Prime Minister Shahid Khaqan Abbasi, along with other Pakistani and Chinese government officials, witnessed the signing ceremony.
“The primary purpose of the MoU is that the PSX will make its best endeavour to help and facilitate the investors, businesses and companies in the Gwadar Free Trade Zone, so that they can raise funds from the exchange,” the statement said.
“The COPHC will extend help to the PSX in conducting due diligence on the investors and businesses in Gwadar Free Zone that are applying to the stock market for listing of equity and debt securities.”
Through the MoU, both companies have mutually agreed to cooperate for listing of equity and debt securities at PSX, in response to strategic national priorities of the Government of People’s Republic of China and Islamic Republic of Pakistan with respect to ‘One Belt-One Road’ initiative in general and ‘China-Pakistan Economic Corridor (CPEC)’ initiative in particular.
Development at Gwadar Port and Gwadar Free Trade Zone suggests that the Chinese government and private sector entities would invest at the free trade zone. The port and the trade zone are both part of the broader CPEC projects worth over $60 billion. CPEC projects largely fall in the areas of infrastructure development and setting up of power projects in Pakistan.
The PSX is the national securities exchange of Pakistan, whereas the COPHS is a China-based multinational organisation, which provides expert marine services, container terminal management and maintenance of port facility services.
COPHS works in Pakistan with an aim to transform one of the most strategically located port of Gwadar into an economic hub of Pakistan and will cater to all types of international commercial activities generated from one business to another, irrespective of quantity, quantum and magnitude.
“Gwadar has enormous potential from all angles and dimensions for any kind of business activity, whether known or emerging with ever developing technologies,” added the statement.Tags: cpec stock exchange