Financial services are fundamental to economic growth and development. Banking, savings and investment, insurance, and debt and equity financing help private citizens save money, guard against uncertainty, and build credit while enabling businesses to start up, expand, increase efficiency, and compete in local and international markets. For the poor, these services reduce vulnerability and enable people to manage the assets available to them in ways that generate income and options – ultimately creating paths out of poverty. The Financial Service Sector holds key importance across the globe. Pakistan is no exception. In Pakistan, JS Global Capital Limited, famously known as JS Global, is a leading company in the Financial Service Sector of Pakistan and also the fastest growing financial institution in Pakistan.
The growth of the Financial Service Sector is inevitable for the economic prosperity of the country as the presence of financial services enables a country to improve its economic condition whereby there is more production in all the sectors leading to economic growth. The benefit of economic growth is reflected on the people in the form of economic prosperity wherein the individual enjoys a higher standard of living. It is here the financial services enable an individual to acquire or obtain various consumer products through hire purchase. In the process, several financial institutions also earn profits. The presence of these financial institutions promotes investment, production, saving, etc.
In addition to it, the presence of financial services creates more demand for products, and the producer, to meet the demand from the consumer goes for more investment. Financial services such as mutual funds provide ample opportunity for different types of savings. These services enable businessmen to maximize their returns. This is possible due to the availability of credit at a reasonable rate. Moreover, the development of all the sectors is essential for the development of the economy. The financial services ensure equal distribution of funds to all three sectors namely, primary, secondary and tertiary so that activities are spread over in a balanced manner in all three sectors.
It is interesting to note that the presence of financial services enables the government to raise both short-term and long-term funds to meet both revenue and capital expenditure. Through the money market, the government raises short-term funds by the issue of Treasury Bills. These are purchased by commercial banks from out of their depositors’ money. The most important benefit for any government is the raising of finance without offering any security. In this way, financial services are a big boon to the government.
In the last two decades, the financial services sector in Pakistan has seen remarkable growth and structural development. Many companies, to provide financial services, joined the race to lead the financial service sector but the JS Global has been consistent throughout its journey and has emerged as the leader in the financial service sector of Pakistan. The JS Global has significantly contributed to making the financial services sector an effective driver of economic growth.
The JS Global Capital Limited was incorporated as a private limited company on June 28, 2000. However, the Company commenced its operations in May 2003, and the name of the Company was changed from JSCL Direct (Private) Limited to Jahangir Siddiqui Capital Markets (Private) Limited. Subsequently, the Company was converted into a public unquoted company and the holding company Jahangir Siddiqui and Company Limited (JSCL) offered its 25% shareholding to the general public for subscription in December 2004 and the Company obtained listing on Karachi Stock Exchange Limited and Islamabad Stock Exchange (Guarantee) Limited on February 7, 2005.
During 2006-07 the Company issued 10,009,700 shares to Global Investment House K.S.C.C Kuwait, (‘Global’). The shares were issued to Global without offering the right shares based on a special resolution passed on July 11, 2006. Securities and Exchange Commission of Pakistan vide its letter no. EMD/CI/49/2006-458 dated July 19, 2006, gave its approval in principle to the scheme of the transaction. During the year 2012, JS Bank Limited (the Bank), a subsidiary of JSCL, acquired 25,525,169 shares of the Company from the JSCL and other shareholders against the issuance of 185,321,537 shares in lieu thereof. As a result, the principal owner of the Company was transferred to the Bank. Presently, the Company is a subsidiary of JS Bank Limited.
During the year 2015, three Stock Exchanges namely Karachi Stock Exchange, Lahore Stock Exchange, and Islamabad Stock Exchange were integrated into Pakistan Stock Exchange (PSX). As a result, the Company is a Trading Right Entitlement (TRE) Certificate holder of Pakistan Stock Exchange besides being a member of Pakistan Mercantile Exchange. The principal business activities of the Company are Share brokerage, Money Market, Forex, Commodity brokerage, Advisory, Underwriting, Book Runner, and Consultancy services. Other activities include investment in a mix of listed and unlisted equity and debt securities and reverse repurchase transactions. Presently, the Company operates through eight branches: Two in Karachi, while one each in Lahore, Islamabad, Hyderabad, Rawalpindi, Multan, Peshawar, and Faisalabad besides head office based in Karachi.
In recent years, JS Global has witnessed unmatched growth as it has emerged as the fastest-growing company in the financial service sector of Pakistan. In the 16th Annual Excellence Awards Ceremony 2019, hosted by the Chartered Financial Analyst (CFA) Society Pakistan, the company won an unprecedented record of 5 awards in the categories of Best Equity Brokerage House, Best Economic Research House, Best Transaction, Best Equity Analyst and Best Equity Trader. During the ceremony Kamran Nasir, CEO JS Global said, “Never before in the history of the CFA Awards has one brokerage firm won these many awards in a single go. We would also like to extend our appreciation to the CFA association for undertaking such initiatives to recognize industry leaders and build market confidence”.
Moreover, JS Global has been effectively playing its role to improve the trade relations of Pakistan with other countries. For instance, the company organized the investment conference entitled “Pakistan Investment Conference 2019” from 4th to 6th September in 2019. The conference was aimed to showcase Pakistan’s economic growth and business potential amongst leading global investors to attract foreign direct and portfolio investment. Such conferences are held annually and feature prominent international and local partners including representatives from the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Pakistan Business Council (PBC).
The global pandemic, COVID-19, caused severe damage to the economies worldwide and continues to affect the countries especially the developing world. Timely and effective decisions by the Government of Pakistan and the State Bank of Pakistan enabled the economy to survive the pandemic effectively and efficiently. Low penetration levels have been a major challenge to the development of Pakistan’s financial market. At the same time, the relevant authorities have launched several initiatives during the year that will go a long way in addressing these matters while JS Global has also played its part in the development of the country’s equity market. 2020 has been a year of the Exchange Traded Funds (ETFs) for which the Company remains the sole Designated Market Maker. Moreover, in December 2020, the Asiamoney, UK’s leading business and financial publications of Asia, awarded top honours to the JS GLobal in their Asiamoney Broker’s Poll for 2020.
In short, the award recognition, by the national and international societies and organizations, reflects the continuity and vitality of the company. For any country, the performance of its Financial Service Sector has a decisive role to play for the economic growth, which resultantly improves the standards of living of the population of the country. In Pakistan, JS Global is leading from the front in the Financial Service Sector of Pakistan. The leadership and the people attached to the company deserve salutations for their tremendous services to the people of Pakistan.