The Pakistan Economy Watch (PEW) on Tuesday expressed scepticism about deal between National Accountability Bureau (NAB) and Karachi Stock Exchange (KSE) to bring rogue brokers to book. This is a showy misrepresentation intended to conceal unpleasant reality and gain popularity, it said.
The stock market crashes from 2000 to 2008 were engineered in which top government functionaries and influential brokers were directly involved, said Abdullah Tariq, SVP, PEW in a statement issued here today. He said that why NAB and KSE are determined to do something about the 2008 crash after four long years. Masses deserve to know the outcome of investigations of all the five stock market crashes that took place in May 2000 and March 2005, he said.
Was any influential culprit identified, held responsible, any criminal cases registered, or property of any broker confiscated to properly compensate victims, he questioned. Abdullah Tariq said that the people and companies lost almost Rs 200 billion in 2008 crash which benefited some influential politicians and brokers. The impact of crash on currency and forex reserves was disastrous while it helped some brokers to establish banks and factories which merits probe.
The PEW official said Musharraf fired Chairman SECP during Eid holidays to save brokers from legal action. Since then SECP has become a toothless watchdog safeguarding the interests of broker mafia. Former chairman SECP Dr Tariq Hassan blamed former PM Shaukat Aziz, former Minister of State for Finance Omar Ayub Khan and former Prime Minister's Adviser Dr Salman Shah for involvement in the scams.
Abdullah Tariq said that record number of crashes took place during Shaukat Aziz era and finance minister and prime minister while any action against the perpetrators was avoided which left criminals more fearless and markets highly vulnerable. People have lost faith in stock markets as out of 40 million people having bank accounts only 120,000 people may be investing in the stocks. He asked the Chief Justice to take note of the situation as the institutions meant for safeguarding the rights of masses and investors and the departments entrusted for eradication of corruption have become useless entities wasting public money.-PR