Incumbent Government after procedural changes has finalized two state enterprise funds namely Market Support Fund (MSF) and Pakistan Opportunity Fund (POF) to energise the capital market. Economic Coordination Committee (ECC) will formally give the guarantee and approval for the Two funds on Thursday May 30, source close to the Adviser on finance revealed World News Observer on Tuesday
Funds announcement was delayed due to the changes and disbursements. Earlier it was planned to announce on May 20, source added.
It is pertinent to mention here that the Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh has approved the fund of Rs 17-20 billion to be managed by NIT, State Life and banks to provide the liquidity.
Earlier this month, a delegation of leading Businessmen and Brokers comprising of Bashir Jan Mohammad, Arif Habib, Aqeel Karim Dhedhi, Ali Jamil and Chairman PSX Sulaiman Mehdi met the Finance Advisor Dr. Abdul Hafeez Sheikh along with Chairman FBR Syed Shabbar Zaidi and Spokesperson for MoF Khaqan Najeeb in Karachi to discuss the overall macro-economic situation of the country and its impact on the Capital Markets.
The delegation also proposed to resolve the present issue of ready futures transaction at PSX which is also hurting the market volumes.
It was also recommended that keeping in view the attractive valuations at the PSX, the NIT State Enterprise Fund which was created in 2009 for market support should be reactivated on the same lines. Since the Fund still exists, it would not take long to be activated.