31 families occupy Pakistan stock market, PIDE
ISLAMABAD: A study by Pakistan Institute of Development Economics (PIDE) has revealed that only 31 families occupy the Pakistan Stock Exchange and the boards of directors of KSE 100 Index companies are mostly people close to these families.
Some of them are his employees.According to a study by PIDE Vice-Chancellors Dr. Nadeem-ul-Haq and Amin Hussain, “Small Club: Pakistan’s Economic Market Distributors and Networks”, in 2018, when this data was collected, 31 families Dominated by 100, the study sheds light on corporate groups and their ownership in the stock market.The second is how the Company Board of Directors discusses the structure and professional management of the company with the owner and his family.
The study said that Dr. Mehboob-ul-Haq had pointed out the financial monopoly of 22 families in Pakistan in 1967. After 50 years, most of the wealth in the stock market is owned or controlled by 31 families.The boards of directors include people from the corporate sector, business families, retired and serving officers in the civil service and the military.According to the study, joining the board of directors is tantamount to membership of Pakistan’s elite club. The study challenges the notion that the stock market is a reflection of a strong economy and a dynamic financial sector in Pakistan.The study found that there is a network of directors of companies listed on the stock exchange, which should be a cause for concern.