finance ministry institution

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Group # 05 : 

2 Group # 05 S.Goher Ali Shah Tehmina Hameed M.Usman Ali Tahreem Batool M.Nisar Khan

Ministry of Finance : 

3 Ministry of Finance Stock Exchange Ministry of industry and production

Stock Exchange : 

4 Stock Exchange

Outline : 

5 Outline Overview of financial markets Role and functions of stock exchange

Overview of Financial Markets : 

6 Overview of Financial Markets Two types of financial markets Money markets Capital markets Primary market Secondary market

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7 The Hierarchy of Markets Money market Government bond market Corporate bonds & equities Asset backed securities & derivatives Gov’t T Bills

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8 Financial Market Money market Capital market Primary market Secondary market Commercial banks Firms raise capital Investors trade securities issued in primary market debt Public Private placement Short term instruments Stock exchange Credit unions

Instruments : 

9 Instruments Equities Bonds Most popular investing instruments Stocks and shares Bonus issues Rights issues Corporate Government

Three Stock Exchanges in Pakistan : 

10 Three Stock Exchanges in Pakistan Karachi Stock Exchange; formed in 1947 85% of the turnover occurs at KSE Lahore Stock Exchange; formed in 1971 14% of the turnover occurs at LSE Islamabad Stock Exchange; formed in 1989 1% of the turnover occurs at ISE

Purpose of stock exchange : 

11 Purpose of stock exchange Established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities

Role and Functions of a stock exchange : 

12 Role and Functions of a stock exchange Raising capital for businesses To provide liquidity to the investors Mobilizing savings for investment Facilitating company growth Redistribution of wealth Creating investment opportunities for small investors

Role and Functions of a stock exchange : 

13 Role and Functions of a stock exchange Establishes rules for fair trading practices and regulates the trading activities of its members according to those rules Provides a physical location for buying and selling securities that have been listed for trading on that exchange

Other functions of the stock exchange market as an organization are : 

14 Other functions of the stock exchange market as an organization are To guarantee the legal and economic security of the agreed contracts To provide official information about the quantities that are negotiated and of the quoted prices To fix the prices of the securities according to the fundamental law of the offer and the demand

Other functions of the stock exchange : 

15 Other functions of the stock exchange It permits for the investor to have a political power It offers to the company’s free publicity attention of the media (television, radio, etc.) in case any important change in its owners (the share holders)

Securities and Exchange Commission of Pakistan : 

16 Securities and Exchange Commission of Pakistan

VISION : 

17 VISION The development of modern and efficient corporate sector and capital market, based on sound regulatory principles, that provide impetus for high economic growth and foster social harmony in the Country.

MISSION : 

18 MISSION To develop a fair, efficient and transparent regulatory framework, based on international legal standards and best practices, for the protection of investors and mitigation of systemic risk aimed at fostering growth of a robust corporate sector and broad based capital market in Pakistan.

STRATEGY : 

19 STRATEGY To develop an efficient and dynamic regulatory body that fosters principles of good governance in the corporate sector, ensures proper risk management procedures in the capital market, and protects investors through responsive policy measures and effective enforcement practices.

History of SECP : 

20 History of SECP Corporate Law Authority Initiated in 1997 under the Capital Market Development Plan of the Asian Development Bank (ADB). Establishment under SECP act 1997 Start operation in Jan 1st, 1999

ORGANIZATIONAL SETUP : 

21 ORGANIZATIONAL SETUP Head Office at Islamabad 8 Regional Offices

Divisions of SECP : 

22 Divisions of SECP Company Law Division Securities Market Division Specialized Companies Division Support Services Divisions

Functions of SECP : 

23 Functions of SECP Regulation of securities and CDC (Central Depository Company) Credit rating companies Mudarba companies Administration of company law Regulation of non banking finance Incorporation/registration of companies Encourage of foreign investment

FBR : 

24 FBR Responsible for collecting revenue for the government of Pakistan

History : 

25 History FBR was created on April 01, 1924 After independence 31st August 1960 Further changes in 1974 Central Board of Revenue has now become Federal Board of Revenue

Functions of FBR : 

26 Functions of FBR Executive head of the board as well as secretary general of the revenue division has the responsibility of: Formulation and administration of fiscal policies Levy and collection of federal taxes quasi-judicial function of hearing of appeals Involve interaction with the offices of the President, the Prime Minister, all economic Ministries as well as trade and industry

Tax Collection Trend : 

27 Tax Collection Trend

ORGANIZATIONAL CHART OF CENTRAL BOARD OF REVENUE/REVENUE DIVISION : 

28 ORGANIZATIONAL CHART OF CENTRAL BOARD OF REVENUE/REVENUE DIVISION SECRETARY GENERAL REVENUE DIVISION/ CHAIRMAN CENTRAL BOARD OF REVENUE Line Members Fiscal Research & Statistics Facilitation and Tax Education Information Management System Audit Human Resource Management Functional Members Support Members Direct Taxes Sales Tax & Federal Excise Customs Admin Tax Policy & Reforms Legal Director General Valuation Director General Inspection Direct Taxes Director General Training (Direct Taxes) Director General Training (Indirect Taxes) Director General LTU at Karachi & Lahore Director General Inspection & Internal Audit Director General Intelligence & Investigation

BOI : 

29 BOI Facilitation of local and foreign investors for speedy Enhance Pakistan 's international competitiveness and contribute to economic and social development. Domestic and foreign to provide them all necessary information and assistance in coordinating with other Government Departments/Agencies

History : 

30 History Federal Government after the first day of September, 1954 Foreign Private Investment (Promotion and Protection) Act, 1976

5 Key Reasons To Invest In Pakistan : 

31 5 Key Reasons To Invest In Pakistan Geo-strategic Location Trained Workforce Economic Outlook Investment Policies Financial Markets

SMEDA : 

32 SMEDA With a futuristic approach and professional management structure it has focus on providing an enabling environment and business development services to small and medium enterprises

History : 

33 History Political instability and cross-border conflicts 3.2 million enterprises in Pakistan SMEs contribute over 30% of GDP US$ 2.5 billion in exports 25% of exports of manufactured goods and 35% of value added in manufacturing (SMEDA) was established in 1998

Public-private partnership : 

34 Public-private partnership Initially SMEDA operated on a private sector ethos After 2003 the power balance changed

Functions : 

35 Functions Formulate a policy to encourage the growth of SMEs in the country Identify business opportunities on the basis of gaps between supply and demand. Set up and maintain a machinery and supplier database for SMEs. Arrange sector studies. Help SMEs secure financing.

Functions : 

36 Functions Facilitate internationalization of SMEs by conducting seminars, workshops and training programs. Facilitate sectoral business development services to SMEs. Assist SMEs in getting international certifications (UL, CE, DIN, JIS, ASME, KS, etc.) for their products and processes. Facilitate the development and strengthening of SME associations and chambers through linkages with federal and provincial organizations. Develop a forum of public private partnership to facilitate an enabling environment for business development in the SME sector.

Economic Sector Departments Under SMEDA : 

37 Economic Sector Departments Under SMEDA Fisheries Light engineering Gems and jewellery Textiles Marble & granite Urban transport Agriculture IT Ceramics and surgical goods

Other Enhancement : 

38 Other Enhancement In 2001, the Asian development bank initiated a long-term support program for SMEDA Cluster development programs Established regional offices Regional studies on business potential

Task Force to work effectively : 

39 Task Force to work effectively Business environment Access to finance Access to resources and services SME definition, feedback, and monitoring and evaluation mechanism Four Working Committees

SMEDA Training Services HRD Cycle : 

40 SMEDA Training Services HRD Cycle

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