The government must announce a bailout package for the stock market
Karachi: Mr. M. Bashir Janmohammad, Chair of the Westbury Group of Companies said that due to the coronavirus pandemic, the release of investment by foreign and local investors, rupee devaluation, high interest rates and closure of many industries, Pakistan’s Stock Market capital has fallen from $ 100 Billion to $ 33 Billion.
To support the stock market and the overall investment climate, the chairman of the Westbury Group company has advised the government to announce a comprehensive bailout package for the stock market. He further said that the discount rate was drastically cut to bring it in single digits, while the decision to establish a support fund consisting of SOEs such as the State Life, EOBI and the National Bank through the National Investment Trust (NIT) must also be implemented. Currently, the price-to-income ratio is the lowest in the region and returns are high. In addition, share repurchases by public companies such as PSO, PPL & OGDC up to 70pc. their ownership, shares pledged in banks to create liquidity, abolished capital gains taxes on shares, reduced taxes on dividends to 10pc. are some other steps that the government must take to stabilize the stock market. ***
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