Punjab Information Technology Board (PITB) and Pakistan Stock Exchange (PSX) in principle agreed during the 4th PITB Roundtable Conference powered by TechHub, to sign a Memorandum of Understanding (MoU) soon to facilitate Startups for raising investment from the Capital market. This was stated by Dr. Umar Saif Chairman PITB here today.
While talking to a group of media persons Dr. Saif said that this partnership would serve as an important step forward to encourage entrepreneurs seeking to raise investment locally, which would give a major boost to the small and medium enterprises, the growth of IT industry and strengthening the national economy.
A platform would be devised for incubators and startups jointly by PITB and PSX for the ecosystem to support the entrepreneurs, he added.
He further informed that on signing a MoU both the parties would collaborate and endeavor to facilitate technological entrepreneurship in Pakistan and nurture an ecosystem for the growth of technology startups.
Under the proposed MoU, PITB would share their database of registered startups with PSX so that the technology startups be encouraged to sign up on the online PSX Private Market aimed at bringing together startups and investors.
The launch of Private Market is to date subject to PSX Board and SECP’s approval. Furthermore, PITB’s technology incubator/accelerator/co-working space shall collaborate with PSX to promote the growth of startups.
The parties may coordinate for exploring ways and means to initiate common business support programs/projects for new entrepreneurial ventures.
The parties may consider organizing joint events (e.g. conferences, workshops) with representation from both parties in promoting entrepreneurship.
Moreover, PSX and PITB will jointly create awareness amongst stakeholders regarding the three capital raising platforms offered by PSX, i.e. Main Board (first tier), SME Board (second tier) and Private Market (third tier).
Another important highlight was that PSX and PITB will jointly approach relevant regulatory bodies and will propose a framework to assist startups in equity financing by introducing favorable listing terms particularly in terms of paid-up capital.