Last week closed with the announcement of a great business initiative from the Pakistan Stock Exchange Limited (PSX). As per the news, during the week PSX is going to sign a Memorandum of Understanding (MoU) with Punjab Information Technology Board (PITB), in order to develop an online portal specifically designed for startups. The new web based platform, likely to be named PSX Private Market, is aimed at being developed as a gateway to investor vis-à-vis the startups and their perusing business at the stock market.
With the purpose to enhance access to finance for startups by facilitating them at an online platform where they can sign up and register themselves, the agreement between PITB and PSX is a new milestone. This development shall transpire to provide a boost to the startup culture in the country.
According to Chairman PITB Dr. Saif, the MoU between PITB and PSX will not only increase the volume of investment in Pakistan Stock Exchange, but this MoU is also a way forward towards the encouragement for budding entrepreneurs.
After this agreement PSX will have three layers: the first one is PSX Main Board, while the second is PSX SME. Small and Medium Enterprises (SME) segment constitute nearly 90% of all the enterprises in Pakistan, which is considered as the most important layer in the PSX formation. Now the third layer, PSX Private Market, will incorporate optimality. Private Market will provide way for the startup entrepreneurs to finance their business via the online portal. This layer will reduce the operational delay in the process of acquiring the finances and of course the cost as well.
As is evident, making the database for this portal will be a challenge to initiate this portal. However, as per the proposed model, it is quite likely that entrepreneurs will be motivated to sign up by themselves, thereby automatically generating the database. PSX will also share the database of the registered entrepreneurs. This will give a single platform to the investors and the startups.
PITB and PSX both the parties are enthusiastic to promote this joint venture by conducting seminars and conferences at concerned workplaces. Furthermore, PITB will continuously be providing input to enhance the online portal according to the need of time.
This online portal is a start to bring a revolution in the business sector. Moreover, PITB and PSX will involve other concerned parties in this loop, which will for sure add up a lot to the economy of Pakistan.