ISLAMABAD - Pakistan Peoples Party (PPP) has held the government responsible for heavy losses in Pakistan Stock Exchange (PSX) on daily basis.

“Due to the inconsistent policies of government, investors are losing billions rupees in Pakistan Stock Exchange (PSX) on daily basis,” said PPP Senator Saleem Mandviwalla, who is also Chairman of the Senate Standing Committee on Finance.  He further said that there is no policy for the Pakistan Stock Exchange, as the investors are totally direction less, they do not know, where they have to go.

The stock market was hammered with heavy losses on Tuesday as the PSX-100 index took a steep fall of 1,678.89 points to 44,914.45.

However, the index has gone up by 560.01 points to 45,474 points on Wednesday.  The PSX is under pressure due to the political situation of the country amid ongoing investigation conducting by Joint Investigation Team (JIT) probing Panama papers case.

Analysts expect volatile market and a bounce in the remaining days of this week, but turnover and interest is likely to improve only after Eid holidays, starting next week.

Pakistan Stock Exchange (PSX) continued its euphoric run in last few months, which pushed KSE 100-index up by 637 points to new record high level of 52,388 points in May 2017. However, the index recorded massive losses in last one week or so.

“There is no consistency in the policies of PML-N govt which is the main reason of decline in Pakistan Stock Exchange”, said Mandviwalla and added that government has increased Capital Gain Tax (CGT) on holding of share on both local and foreign investors in the budget for the next financial year 2017-18, which has dented the investment in Pakistan Stock Exchange (PSX).  “Every year in budget new taxes are imposed on stock exchange. Due to Changes in taxes on dividend and capital gains every one losing interest in stock exchange”, he added. 

Senator Saleem Mandviwalla urged that govt to revisit its economic policies to give confidence to the investors of Pakistan Stock Exchange.