KARACHI: The rumours of an imminent bail-out package for Pakistan Stock Exchange seem to be fading as a government official said no proposals have been worked out for it.
This follows on the heels of news last week that the government was considering a Rs20b bailout package for the stock market with the National Investment Trust (NIT) which has shed 24pc in last five months, reported Express Tribune.
Federal Board of Revenue (FBR) spokesman and member Policy Inland Revenue Dr Muhammad Iqbal said no bailout package was under consideration in their department.
KSE-100 index was propped up by the rumours of a bailout package for the stock market as it rose 6pc last week and failed to sustain the gains as it fell to its lowest level in a year on Monday.
Although, on Wednesday the stock market recovered back 2.11pc. This bailout package news was rumored to be a ruse for the public by market players to sell and exit.
In October, Profit reported a team of senior stockbrokers paid a visit to Prime Minister Shahid Khaqan Abbasi at Governor’s House, Karachi where he assured them of support for revival of stock market by bringing Capital Value Tax (CVT) and other taxes to the previous level.
Almost 3 weeks have passed, and no development has been witnessed in this regard. According to a senior-ranked NIT official, the government is said to have conducted no discussion with the asset management company for the institution of a Rs20b bailout fund for PSX.
It seems the government is busy in wake of allegations on Finance Minister Ishaq Dar and political wrangling and uncertainty that it is plagued in. The government currently is on the wrong foot and once it resolves the political dust, only then it would divert its focus on economic matters and find ways to revive the stock market, said a seasoned broker.