Managing Director Lahore Stock Exchange, Aftab Ahmed Chaudhry said that stock market is badly affected by the attack of Nato forces on Pakistani security forces, global economic crisis and domestic recession. National and international investment has been reduced and commercial and business activities are at the verge of closure. Government should announce bailout package to bring stability into the stock market and attract the investors in order to make investment there.
He said that he is aware of the investors' concerns due to present the economic, political and social conditions. These circumstances are temporary. That is why the investors should be calm. He furthered that global economic crisis has badly affected international economies and stock markets and its effects can now be seen on domestic sock markets as well. The most effected economies are of USA and European countries but their governments have announced bail out packages in order to support their stock markets.
Chairman LSE observed that economy of a country is highly dependent on its stock market. If stock market is stable, then economy is also strong. Unfortunately, stock markets are not given prime importance in Pakistan. But the present government and Securities and Exchange Commission of Pakistan intend to bring in stability in to the stock market. For this purpose, certain policies have been announced by the Securities and Exchange Commission of Pakistan in order to protect the interest of the investor.
Investor protection fund has also been introduced into the stock market, he added. Moreover, arbitration committees have been established in order to fix the problems faced by the brokers' community and the investors. Stock market volume has considerably reduced due to the current social, economic and political conditions of the country. The business activities of LSE can be restored/gain momentum only if the government removes the capital gain tax on stock market investments. The stocks volume has been reduced to such an extent that its is not beneficial for the government even after the imposition of capital gain tax. However, the removal of capital gain tax may bring back the commercial and business activities of stock markets.-PR