KARACHI : Finance Minister Naveed Qamar announced here on Tuesday that Rs 20 billion 'Equity Market Opportunity Fund' (EMOF) would be launched within the current week. Addressing members of Karachi Stock Exchange (KSE), the minister said that the Rs 20 billion EMOF would be channelled through National Investment Trust (NIT).
He said that the government is committed to support stock market as it has already taken various measures to support the stock market. "We extended capital gain tax exemption for further two years", he added.
He said that the government is taking various measures to reduce budget deficit to the targeted 4.7 percent level this year. He pointed out that budget deficit had reached up to 9.5 percent during last year. "Now, due to some measures taken by the present government, it has stopped at 7 percent level, and we are taking measures to further cut it to 4.7 percent", he added.
The minister said that $7.5 billion non-military assistance has been pledged. Hence, there was strong hope that the government would soon overcome the problem of current account deficit.
He said that the government has slashed its expenditure. "We are planning to downsize government departments to reduce expenses", he added. He said that the government has reduced borrowing from State Bank. The government would either not borrow, or borrow negligibly from the central bank, he said, adding that the government would use other sources to generate funds.
He announced that the government would re-launch privatisation programme, after approval by the Cabinet, to generate more funds. The minister said that oil price hike was an international issue. He noted that the government was facing a challenging situation due to unprecedented rise in oil prices.
He observed that the monetary policy should not be further tightened despite inflationary pressure. "We want to maintain a balance between monetary and fiscal policies in co-ordination with SBP, and boost exports", he said.
Earlier, the minister held a meeting with KSE Managing Director Adnan Afridi and National Investment Trust (NIT) Chairman Tariq Iqbal Khan. Securities and Exchange Commission (SECP) Chairman Razi-ur-Rehaman was also present on the occasion.
Copyright Business Recorder, 2008 |
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