Govt should announce bailout package for stock market

Karachi: Mr. M. Bashir Janmohammad, Chairman Westbury Group of Companies has said that due to coronavirus pandemic, disinvestment by foreign and local investors, rupee devaluation, high interest rates and closure of many industries, Pakistan Stock Market’s capitalization has gone down from $100 Billion to $33 Billion.

To support stock market and investment climate as a whole, chairman Westbury Group of companies has suggested government to announce a comprehensive bailout package for the stock market. He further said that discount rate be drastically cut to bring it in single digit, while the decision to form a support fund consisting of SOEs like State Life, EOBI and National Bank through National Investment Trust (NIT) should also be implemented. Currently, price to earnings ratio is lowest in the region and returns are high. Moreover, shares buy-back by public listed companies like PSO, PPL & OGDC up to 70pc. of their holding, shares pledging in banks to create liquidity, waiving-off capital gains tax on shares, reducing tax on dividends to 10pc. are some of the other measures government should take on urgent basis to stabilize the stock market.***