20000321

Three public banks'

5 pc shares to be

floated thru bourses,

says Shaukat

RECORDER REPORT

KARACHI: Five percent shares of the three major public sector banks will be floated through the stock markets by the end of the calendar year to kick start the process of privatisation said the Finance Minister, Shaukat Aziz.

Talking to newsmen after addressing the Seminar on "Savings and Investment; Avenues and Aversion" organised by the Investment and Marketing Forum, the minister said that the government was working on National Bank, United Bank and Habib Bank for the disinvestment.

He sighted bigger role of the stocks markets in future. He also saw signs of improvement in the economy which reflected from the healthy equity market.

To improve the confidence of the investors and health of the equity market the government has given priority to the following measures:

Ñ To strengthen the equity market, to protect small investors, corporate governance and to curb the use of inside information.

Ñ The government will also provide opportunity for listing of companies of Information Technology which have no track record because of their recent emergence.

He said that a draft law for "Take Over" is ready. It will be announced by the end of this month.

National Clearing System of the stock markets will be ready by June 2000, he said.

He was of the view that Islamic financial instruments have potential for stocks markets.

He said that the budget will be announced by the end of May. Since the Assembly's proceeding is not involved in the budget preparation, the earlier announcement is possible.

Answering a question about the tariff reduction by the Hubco Power, the minister said that Hubco has offered new tariff and the government is studying the new offer.

He expressed satisfaction that the import of capital goods has increased and the new textile machinery is being imported.

He was hopeful that the industrialists will realised the need of the BMR so that they could be able to remain competitive in the fast changing world.

He said that currently the government was busy in working for budget and negotiating with donors to arrange for foreign resources.