The Karachi Stock Exchange (KSE) has welcomed various measures announced by the minister in the budget 2007-08 and termed it growth-oriented as no new taxes have been proposed. Acceptance of KSE proposals for demutualisation will help in speedy and smooth transformation of corporatisation process to make KSE comparable with global exchanges.
In a press release issued here on Monday, the KSE reviewed the federal budget 2007-2008, which was the biggest in size in the history of the country. The Exchange also noted extension of capital gains exemption for further one year up to June 2008 in line with the earlier announcement made by the Prime Minister. This has enhanced the government's credibility among the investors and will further accelerate the foreign portfolio investment in the country through stock market.
The KSE also noted that a record amount is set aside for the Public Sector Development Programme and appreciates various relief measures announced in the budget which, inter-alia, include increase in minimum wages of workers, increase in pension and allowing subsidies on food items.
The Exchange also welcomes a number of new measures introduced for market development namely:
(i) Introduction of Group Taxation concept- one of the persistent demand of the corporate sector which will help in promoting culture of consolidation of companies.
(ii) Introduction of Real Estate Investment Trust- a new form of investment tool which will promote growth of capital market in future.
(iii) Exemption of tax up till 2014 for private equity fund.
iv) Exemption from tax one time on corporatisation of individual membership will promote and encourage corporate culture and enhance growth of securities market in the country.-PR