The Securities Exchange Commission of Pakistan has already received an application from Pak-Kuwait Investment Company to establish Islamic insurance (Takaful) company and now the Pakistan Industrial Credit and Investment Corporation (Picic) has also decided to enter into the business.
Finance Minister Shaukat Aziz in his budget speech on Saturday announced introduction of insurance companies based on Islamic system.
Deputy Chairman of Picic, Bashir Janmohammad, told Business Recorder that there was need of such insurance companies in Pakistan and added that he would take the initiative to apply for the establishment of this type of insurance company.
He said that Picic would give a lead to other organisations to establish 'Takaful' insurance companies.
Commenting on the Budget, he said that it was an industry-friendly budget, which would create new avenues for investment. "The investment which was shy will now gain momentum and extension in the exemption of capital gains tax up to 2007 would immediately boost the stock market which is called the 'Barometer' of the country's economy."
Bashir said that the imposition of the 0.1 percent tax on the income of stock dealers would not create any adverse effect on the activities of corporate sector.
He said that all budgetary steps" are favourable" for improving the investment climate which would create employment opportunities in the country.

Copyright Business Recorder, 2004

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