Pakistan stands at number one position for providing highest equity returns and dividends to local and foreign companies on their reported earnings and profitability within emerging markets of Asia, Europe, Middle East, Africa and Latin America, The Nation deduced from IMF report on Monday.
This report further indicates that Pakistan equity market has been put on the sustainable path of growth and stability since the beginning of the first quarter of calendar year, 2009.
IMF statistical output on emerging markets’ dividend-yield ratios revealed that despite witnessing slowdown in FDI and other investment inflows particularly portfolio investment, the domestic financial market is performing well in terms of offering better profits and dividends.
The divided-yield ratio in Pakistan is still stayed at 9.1 per cent since January 2009, which is most attractive and highly profitable for the local and foreign blue chip companies, operating in oil & gas exploration, petroleum refining, fertilizer and financial sectors of economy as compared to its emerging and regional markets’ peers.
IMF Global Financial Satiability Report said Czech Republic and Egypt are runners up with providing 7.4 per cent and 6.3 per cent rate of return on equities respectively.
Meanwhile, report found out that the solvency and adequacy of the banking system is somehow remaining intact. As per the financial soundness indicators compiled by report, Pakistan’s scheduled banks non-performing loans (NPLs) to total loans grew by 11.5 per cent by end-March 2009, which is number 4 amongst its emerging markets financial business counterparts of the Middle east and Central Asian regions.
Earlier, report said the immediate outlook for the financial system has improved markedly since the April 2009.
Financial markets have rebounded, emerging market risks have eased, banks have raised capital, and wholesale funding markets have reopened. Even so, credit channels are still impaired and the economic recovery is likely to be slow.
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