Govt to launch stocks stabilisation fund

KARACHI - The govt hopes to launch an equity market stabilisation fund worth Rs 20 billion, finance minister Naveed Qamar said, in the wake of 30 per cent fall on the KSE benchmark index since April.
Speaking at the Karachi Stock Exchange on Tuesday, he said the National Investment Trust (NIT) will manage the fund.
“We intend to move through NIT and give a substantial amount of boost to the stock market through the NIT, I think we can start with Rs 20 billion and hopefully start in this week,” Qamar said.
The fund was proposed earlier this month by the Karachi Stock Exchange and the Securities and Exchange Commission of Pakistan (SECP).
Qamar said Pakistan was in talks with Saudi Arabia to defer payments for crude oil sales during the current fiscal year.
“There will be an announcement soon from Saudi Arabia, which will have a very positive affect on our current account position,” he said.
The minister said that budget deficit had reached to 9.5 percent of GDP in the last one year due to wrong policies of previous government.
Naveed Qamar pointed out that the government has reduced borrowing from State Bank to zero percent and is using other sources to generate funds.
“We will launch privatisation programme to generate funds and thrive stock market. There is a long list of items and this will be decided by the Cabinet. It is in our interest to actively pursue privatisation programme with your cooperation”, he noted.