KARACHI: Pakistan has received approximately 40 percent of investment in stock market through Roshan Equity Investment (REI) from its overseas nationals residing in the Middle East, confirmed an official on Friday.

REI, under the Roshan Digital Account (RDA), is a major initiative taken by the country’s central bank in collaboration with the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), brokerage houses and various banks that facilitate investment in listed securities.

Pakistanis living abroad have invested $6.6 billion through RDA, of which over $500 million was invested in REI primarily by expatriates in the Gulf countries since the launch of the initiative in 2020.

“We have around 11,000 accounts in RDA that are equity-focused,” Badiuddin Akber, CEO of CDC, told Arab News at an event in Karachi. “The majority — 40 percent — of these account holders are from the UAE, Saudi Arabia, Bahrain and other countries in the region.”

The event, World Investor Weekend 2023, is a three-day gathering organized by CDC, the custodian of Pakistan’s capital market, in partnership with the Security and Exchange Commission of Pakistan (SECP), Asset Management Companies (AMCs) and brokerage houses in the country.

Akber mentioned that continuous effort was being made to attract investment from the region by arranging webinars and roadshows.

“CDC and PSX collectively held over 100 seminars, webinars and other online activities targeted at the Middle East, resulting in a higher number of account openings,” he added.

Akber noted that although investment activities had slowed due to higher interest rates, long-term investors remain keen to invest in the equity market due to an attractive price-to-earnings (PE) ratio.

“The higher interest rate and appreciation of the dollar had held investors back, but now that the rupee has appreciated, we hope investors will return to the equity market,” he continued.

Participating institutions at the three-day event include Al-Meezan Investments, Atlas Asset Management, Arif Habib Limited, JS Investments, UBL Funds, Al Falah CLSA, MCB Funds and ABL Funds.

Talha Anwar, Senior Executive Vice President of Al Meezan Investment Management, said the bank had received more than Rs1 billion in investment through RDA.

“The majority of investment has come from the Middle East, including Saudi Arabia and other regional countries, as well as the United States,” he informed. “More than 50 percent of investment has been received from the Middle East.”

Officials aim to encourage overseas Pakistanis to invest in the country’s equity market through RDA.

The stock market ended Friday’s trading session on a bullish note, gaining 721 points to close at 49,493.

The benchmark KSE100 index is expected to hit the 50,000-mark next week for the first time in six years, led by a 20 percent recovery of the rupee against the dollar in the open market.