Pakistan Equity Market - Amnesty Scheme's Success to serve as a Boon for Domestic Liquidity
- We estimate total asset declarations of PKR1.8tn, with domestic assets accounting for PKR1.2tn; bulk of the foreign assets are likely to be declared but not repatriated, being taxed at 3/5%.
- Combining the projected repatriations and taxes on foreign assets, we estimate a paltry USD0.7bn foreign inflow which is unlikely to alleviate the BoP crunch.
- The size of the formal economy as a percentage of total economy is estimated to reach up to 83% from 80%. This shall have a one-off positive impact on FY18 GDP growth which would be revised once the full year data is compiled and finalized.
- The domestic side of the Amnesty Scheme is likely to be extremely successful; our projected PKR1.2tn worth of domestic asset declaration is 3.5% of FY18EGDP, 10% of Banking Deposits and 50% of Free Float Market Capitalization.
- A major chunk of freshly declared domestic assets will continue to be tied up in the working capital of businesses, however the liquid portion will gradually be diverted from Prize Bonds, gold bars and foreign currency parked in lockers to bank deposits, equity market and mutual funds.
Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.
Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.
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