The government has decided to launch an up to Rs 20 billion fund to provide liquidity with a view to supporting the Pakistan Stock Market which is under severe pressure due to currency devaluation and other issues. Advisor to the Prime Minister on Finance Dr Abdul Hafeez Shaikh accepted this proposal during a meeting with stock brokers who met him here on Friday.
The proposed fund will be managed by NIT with the support of State Life Insurance Corporation, some banks and financial institutions, sources told Business Recorder . The Federal Government will formally launch this fund on May 20, 2019, after all necessary approvals. "This would be a market support fund, in the pattern of a fund that was launched during 2008 stock market crisis," sources said. In 2008, a market support fund of Rs 20 was launched by the then government that provided sufficient liquidity. That fund was also managed by NIT.
The proposal of this fund was mooted by a delegation of leading stock brokers who had a meeting with the Advisor to the Prime Minister here on Friday. The delegation comprising Bashir Jan Mohammad, Arif Habib, Aqeel Karim Dhedhi, Ali Jamil and Chairman PSX Sulaiman Mehdi met Dr Abdul Hafeez Sheikh and discussed with him the overall macro-economic situation of the country and its impact on the capital markets.
Chairman FBR Syed Shabbar Zaidi and Advisor to Ministry of Finance Dr Khaqan Najeeb were also present. The delegation suggested that the proposed draft of Listed Companies (Buy Back of Shares) Regulations, 2019, be approved on priority and the limit of 10 percent on treasury shares should be enhanced. They proposed to resolve the present issue of ready futures transaction at PSX which is also hurting the market volumes.
It was also recommended that keeping in view the attractive valuations at the PSX a market support fund may be considered. Dr Abdul Hafeez Shaikh took note of all the suggestions positively and assured the delegation of the government's full support and cooperation, a statement issued by Pakistan Stock Exchange said adding that various other measures relating to market reforms were also discussed.
Comments
Comments are closed.