The interim govt. has vowed to revitalize the stock market by offering incentives for new firm listings and transferring one-third of state-owned enterprises’ (SOEs’) capital market borrowings.
According to a press agency, this was approved during the Cabinet Committee on Economic Revival’s (CCER) second meeting last week. The session was presided over by caretaker Finance Minister Shamshad Akhtar.
Caretaker Govt. Decision on PSX Listing
During the discussion, the finance minister requested that the Federal Board of Revenue (FBR) and the Securities and Exchange Commission of Pakistan (SECP) resolve taxation difficulties for both listed and unlisted companies, as well as develop a method for listing the greatest number of companies on the market.
The committee also discussed changing govt. borrowing limits when issuing securities.
It was suggested that the PSX auction government securities, with the state auctioning Shariah-compliant short-term debt instruments.
Following the CCER conference, the SECP agreed to work with the Power Division to study the prospect of SOEs borrowing from the stock market to meet their funding needs.
Participants also suggested that the Power Division enable the listing of one-third of enterprises that adhere to corporate sector regulations.
Strategy To Prepare by Ministry of Finance
The cabinet committee asked the Ministry of Finance to prepare a strategy for cabinet approval in order to secure for-profit licensed firms’ stock market listing.
Meanwhile, a panel has been constituted to investigate the Pakistan Business Portal concept.
Concerning the agricultural sector, the govt. meeting addressed a proposal to convert the Crop Loan Insurance Scheme (CLIS) into a broader co-insurance pool structure. A judgment in this regard is currently pending.
Overall, Finance Minister Shamshad Akhtar is ready to prioritize incentives for capital markets. If implemented, this might assist the country’s pension fund sector evolve.
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