Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Rs 20bn market support fund in next two days: Tarin
11-01-2008, 09:42 AM
Post: #1
Rs 20bn market support fund in next two days: Tarin
KARACHI (updated on: October 31, 2008, 18:52 PST): Advisor to the Prime Minister on Finance Shaukat Tarin said Friday that Rs 20 billion stock market stabilisation fund will be launched in the next couple of days and much before the removal of flooring.

Addressing the members of Karachi Stock Exchange (KSE), he said that NIT is managing the fund which has four shareholders having an investment of Rs 5 billion each. They are National Investment Trust (NIT), National Bank of Pakistan (NBP), State Life Insurance (SLIC) and Employees Old-age Benefit Institute (EOBI).

He said the government will provide a guarantee to them that they will not lose value of their money. We do not force these institutions to form up a fund. We are doing this for the government itself because we are buying government's scrips.

"We have decided to make a bouquet of these scrips and sell the fund to non-resident Pakistanis. This will convert rupee into dollars and serve as an investment instrument to overseas Pakistanis, he added.

Shaukat Tarin made it very clear that first of all small investors will benefit from this fund followed by other players in the market. NIT will handle this fund very, very professionally, he observed.

However, he categorically said the removal of flooring was a total discretion of KSE board of directors and the government will not interfere in this affair. "You have to decide when you want to remove the floor on 100-Index and not me", he maintained.

He said the stock market serves as the barometer of any economy and the government will take care of the interest of its stake-holders. "Your interest will be taken care off."

Referring to the fears of business community about the future of the economy, PM's Advisor on Finance said the government will stabilise some macro economic indicators by improving liquidity and foreign exchange reserves to boost the confidence.

However, the Advisor suggested that nobody should tamper with the market. "Markets go up and markets go down. It is a "tough luck" when your bet goes down and it is "good luck" when your bet goes up. It is the part of the market. Once you tamper it you are, in fact, tampering with your reputation."

He said in his opinion, the putting up of flooring has not done much good to their reputation.

Tarin said that from now on the country will move with production-led growth and focus on productive areas of the economy which are agriculture and manufacturing and trade.

We have not focussed on agriculture sector in an organised manner and therefore agriculture growth has been falling by one percent every decade and we are currently having under 2-percent growth, the Prime Minister's Finance Advisor said.

"This is unfortunate, because two-third of our population lives in rural areas, while its share in GDP is 20 percent. As a result we are importing food", the PM's Advisor observed.

Similarly, the growth rate in manufacturing sector is negative, 3.8 percent in the first quarter of current fiscal. Last year too, this sector grew at 3.5 percent. "We need to look at the reasons whether it is high cost of doing business or fragmentation."

"We have to tackle all this to ensure a sustainable growth rate in our industry. We have to make all our industry competitive so that it can compete in the international market as well as have a defence against imports", he said.

Tarin said once the industry is competitive, the country will have a balance in its trade.

He pointed out that the country needs to have an integrated energy plan so that there is uniformity in tariff and investors feel that there is a fair market based system.

This plan should also look at how coal, alternate energy sources and hydel energy is utilised, he said and added that human resource should also be developed by focusing it.

Talking of financial market, Tarin said the banks need to cater to the needs of all stakeholder, offer new product and they must expand their reach.

Besides, we need to develop debt market and expand capacity of stock exchanges in terms of more products, more sophistication and more investors and the government must help the investors in this regard.

The government has taken a lead by establishing a "yield curve" through a regular auction of Pakistan Investment Bonds and long term paper auction, the PM's Advisor onFinance said.

He said Planning Commission is being restructured and strengthened and it will devise future policies in consultation with all stakeholders.

Responding to a question about IMF's conditionalities, the Advisor said inflation has to be brought down to enable the economy to grow on a sustainable basis.

"If headline inflation is 25 percent and core inflation is at 17 percent then nothing is going to be competitive in the country including the manufacturing sector. We will do whatever we can to

bring down inflation in the country", he noted.

He said the IMF was buying whatever Pakistan was telling them. "It is a homegrown plan. We are not trying to inflict any more pain than necessary. I assure you that we will not take any step which is not necessary," he maintained.

http://www.brecorder.com/latestindex.php?latest_id=9430
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Government Initiates Activation of $1.5 Billion Uplift Fund LRE-Azan 0 137 01-09-2024 03:32 PM
Last Post: LRE-Azan
  CDA Launches Overseas Pakistanis Support Desks for Enhanced Assistance LRE-Azan 0 274 10-02-2023 03:31 PM
Last Post: LRE-Azan
  Pakistan receives US$2 billion in financial support from Saudi Arabia LRE-Azan 0 594 04-08-2023 02:21 PM
Last Post: LRE-Azan
  Punjab Government has Allocated Rs 300 Million for Minority Development Fund LRE-Azan 0 4,226 11-06-2017 03:06 PM
Last Post: LRE-Azan
  Bahria Town Customer Support Center Salman 0 5,278 03-01-2014 01:10 PM
Last Post: Salman
  Saudi Fund announces $57m for Golen Gol Hydropower Project Salman 0 6,863 11-20-2013 03:19 PM
Last Post: Salman
  15 Days’ Duration Given To Officers For Resolving Property Tax Objections Salman 0 4,560 10-21-2013 06:23 PM
Last Post: Salman
  CDA extends D12, E12 applications’ deadline by 3 days Salman 0 7,550 10-03-2013 01:18 PM
Last Post: Salman
  Work in G-14/2 & 3 to resume in two days Salman 0 3,696 02-20-2013 05:16 PM
Last Post: Salman
  Sixth Road Flyover likely to be completed in five days Salman 0 4,623 01-01-2013 07:05 PM
Last Post: Salman
  alma Chowk to remain closed for nine days Salman 0 4,268 12-12-2012 02:03 PM
Last Post: Salman
  Construction of G-13 flats to start in 15 days Salman 0 4,725 11-08-2012 12:08 PM
Last Post: Salman
  Flyover : commuters’ ordeal for ninety days starts on 9th Salman 0 4,301 09-07-2012 01:33 PM
Last Post: Salman
  RDA seeks report on illegal constructions in three days Salman 0 3,983 07-21-2012 03:57 PM
Last Post: Salman
  PM orders completion of formalities for street lights in 15 days Salman 0 4,679 05-04-2012 01:28 PM
Last Post: Salman
  Muslim Town flyover Inauguration to be delayed by a couple of days Salman 0 4,724 04-18-2012 01:21 PM
Last Post: Salman
  RDA to decide about removing U-turns at Murree road in two days Salman 0 4,121 03-15-2012 01:29 PM
Last Post: Salman
  CM announces Rs 20bn loan package for youth Salman 0 4,549 03-09-2012 12:21 PM
Last Post: Salman
  CM gives 30 days for a plan to make 20 main roads jam-free Lahore_Real_Estate 0 4,497 12-17-2011 12:37 PM
Last Post: Lahore_Real_Estate
  Motorcycle manufacturers seeks govt support to achieve 100% localisation Lahore_Real_Estate 0 3,641 10-06-2011 03:16 PM
Last Post: Lahore_Real_Estate

Forum Jump:


User(s) browsing this thread: 1 Guest(s)