LAHORE: Lahore Stock Exchange (LSE) Managing Director Aftab Ahmed Chaudhry here on Tuesday demanded the government to announce a bail-out package to bring stability into the stock market, which was badly affected by NATO forces attack on Pakistan's securities forces, global and domestic economic recession.
He said that national and international investments have been reduced and commercial and business activities are at the verge of closure, adding the bail-out package would help attract investors.
The MD said the global economic crisis had badly affected the economies of USA and European countries but their governments had announced bail-out packages to support the respective stock markets.
The economy of a country is highly dependant on its stock market, he said, citing, if stock market is stable, then economy is also strong.
However, he added, the present government, and Securities and Exchange Commission of Pakistan intended to bring in stability in to the stock market, for which the SECP announced certain policies to protect investors interest and an Investor Protection Fund had also been introduced in the Stock Market.
While, arbitration committees have been established to fix the problems faced by brokers and investors. Stock market volumes have been considerably reduced due to current social, economic and political conditions of the country, he added.
The business activities of Lahore Stock Exchange can be restored and gain momentum only if the government removes the capital gain tax on stock market investments and this would bring back the commercial and business activities of Stock Markets, he observed.
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