The Karachi Stock Exchange registered a strong 2014 with Pakistan ranking as the best performing frontier market. The improving macro environment and an upgrade in Pakistan’s weight in the MSCI FM index led to a favourable backdrop for equity market performance.

The National Clearing Company of Pakistan Limited (NCCPL) has been entrusted by the Federal Board of Revenue with the responsibility to compute and collect tax on capital gains. “The centralisation of the capital gains tax regime at the NCCPL will provide for consistency and standardisation across domestic and foreign investors,” observes Hammad Izz-e-Hamid, head of securities services Middle East and Africa for Deutsche Bank.

The Central Depository Company (CDC) has launched custody and settlement services of government securities and has also become a participant in the RTGS mechanism. Projects under implementation at the CDC include the development of an eIPO application, a web-based system to subscribe to IPOs, and introduction of a direct settlement service through which investors can access clearing and settlement services directly through the depository.

The Securities & Exchange Commission of Pakistan is preparing book-building regulations, which are expected to come into force during 2015.

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