According to a new report, the government plans to list power firms under China-Pakistan Economic Corridor (CPEC) on the stock exchange. Minister of state for finance, Rana Afzal Khan, held meetings with senior officials of Pakistan Stock Exchange (PSX). Citing the state finance minister the broker stated that CPEC energy and power related projects need be listed on the stock exchange under the government’s plan.
“This would enable ownership of the multi-billion dollar projects by public as well as help the bourse grow further.”
While Rana Afzal Khan did not talk about any other details, traders believed that the government could make use of capital market to raise funds by issuing infrastructure bonds and equity offerings.
“Minister was convinced that stocks trading business was overtaxed and the structure should be rationalised, while tax base should be expanded to increase government’s revenue.”
According to Arif Habib, chairman of Arif Habib Corp, KSE-100 Index fell nearly 20 percent in 2017.
“Negative performance is primarily attributed to higher taxes alongside political and economic woes, thus resulting into a directionless market and foreigners’ outflows instead of inflows despite MSCI (Morgan Stanley Capital International) upgradation,”