Pakistan prepares to launch digital platform to attract investors with online-only broker licenses

A man walks past the building of Pakistan Stock Exchange in Karachi, Pakistan on November 17, 2023. (AN photo)
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Updated 17 November 2023
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Pakistan prepares to launch digital platform to attract investors with online-only broker licenses

  • The plan to rely on electronic means to encourage investment comes as PSX witnesses 80% account opening online
  • PSX will soon begin to auction government debt securities like treasury bills, making it easier for the public to invest

KARACHI: Pakistan’s equity market and securities watchdog are all set to launch a one-window digital platform to issue online-only broker licenses in a bid to attract new investors, including venture capitalists (VCs), fintechs, and other startups, said a senior stock exchange official on Thursday.

The Securities and Exchange Commission of Pakistan (SECP) approved a regulatory framework for online-only brokers earlier this year in May by amending the Pakistan Stock Exchange (PSX) Rulebook.

The platform, named Online-Only Broker License, is designed to ensure customer onboarding, trade execution and provision of support services through electronic means only.

“This is an opportunity to set up a unique and different business model for the brokerage industry,” Raeda Latif, head of marketing and business development at PSX, told Arab News on the sidelines of an event to comprehensively explain the initiative.




Pakisan Stock Exchange's managing director, Farrukh Khan (left), and head of marketing and business development, Raeda Latif, chair a meeting in Karachi, Pakistan on November 17, 2023. (AN photo)

Latif explained that investors interested in fintechs providing payment solutions and looking to expand their presence in Pakistan’s domestic investment environment can opt for this license.

“They can set up their own businesses,” she added. “Even VCs can invest in potential startups or [fund] entrepreneurs who are looking to establish their business in the brokerage industry.”

The PSX official remarked that the platform would be “very agile” and provide a lean model, allowing companies to conduct their entire business digitally, including reaching out to investors, placing orders, executing trades and closing accounts.

The online brokers would require a PSX Trading Right Entitlement Certificate (TRE) by submitting a fee of Rs1.25 million and demonstrating a minimum net worth of Rs7.50 million.

They will also have to pay Rs50,000 to secure a license from the SECP.

Latif noted that recently, over 80 percent of investor accounts at PSX had been opened online, with 60 percent from various small cities in the country.

Speaking at the occasion, PSX managing director Farrukh H. Khan said the stock exchange would also facilitate the auction of government debt securities like treasury bills and Pakistan Investment Bonds (PIBs), allowing the general public to invest in them by using small amounts.

“With the auction of the government debt securities, the common man will be able to invest and trade in the securities with small investments,” he told the media.

Khan informed the PSX and the State Bank of Pakistan (SBP) would jointly float debt securities soon.

Currently, the government debt securities are only auctioned by the SBP through a network of about 10 banks working as primary dealers, which the SBP also regulates.

The PSX chief said that all 200 stockbrokers and some 40 Pakistani banks would participate in the buying and selling of government debt securities at the bourse after the initiative was implemented.

Khan also maintained that Pakistan’s equity market was performing well, trading at new all-time highs following recent policy measures taken by the government to fulfill the International Monetary Fund’s conditions and an expected fall in interest rates.


Artificial intelligence is transitioning into a ‘digital employee’

Updated 27 February 2026
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Artificial intelligence is transitioning into a ‘digital employee’

  • AI can be an effective tool, business leaders tell Arab News
  • Not about jobs, but ‘convergence of human capital and AI’

RIYADH:  Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.

Amidst the current global transformations, an active regional digital environment is emerging.

This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.

Arab News spoke to various business leaders about the emerging shape of the sector.

Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.

Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.

He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.

While machines excel at processing big data and performing repetitive, precise tasks, humans would bring creativity, emotional intelligence, and complex decision-making. (Supplied)

Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.

He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”

AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.

Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”

He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.

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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.

The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.

Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”

He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.

Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.

Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.

He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.

In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.

Ali Aljumhour, CEO of VALUE Consultancy. (Supplied)

Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.

Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.

He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.

On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”

There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.

He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.

In the employment sector, Aljumhour expects fundamental changes in standards.

There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.

Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.