Pakistan’s Information Technology and Telecommunication sector (IT/ITeS) is set for a significant boost as 7 companies have expressed interest in listing on the Pakistan Stock Exchange’s (PSX) Growth Enterprise Market (GEM) Board.
This news comes as a result of the Pakistan Software Export Board’s (PSEB) proactive initiatives to establish an easier route for IT companies to raise capital.
The PSEB, playing a pivotal role in promoting the IT industry, is actively working with the PSX. The recent dissemination of proposed amendments to the GEM Board regulations demonstrates a commitment to streamlining the listing process. This includes a reduction in corporate governance requirements from 21 to 3 by the Securities and Exchange Commission of Pakistan (SECP), making it easier for IT/ITeS firms to join the GEM Board.
According to PSEB, this initiative aims to list a total of 40 IT companies on the GEM Board, ultimately increasing the overall number of listed tech companies on the PSX. This growth will strengthen the financial ecosystem for the IT/ITeS sector, fueling its continued development.
“The listing of IT companies on the PSX will not only provide them with access to much-needed capital but also contribute to building a strong brand image for Pakistan’s IT/ITeS industry in the international market,” says a PSEB official.
To further incentivize participation, the PSEB will cover 70% of the listing costs for qualifying IT/ITeS companies, significantly reducing the financial burden associated with going public. This financial and technical assistance will be instrumental in supporting companies through the listing process.
