KARACHI - The floor at the KSE, which was slapped three months ago, is likely to be removed on January 5, 2009, a key broker of the Karachi Stock Exchange, on the condition of anonymity, disclosed to The Nation here on Wednesday. He added that the government might inject the promised market support fund of Rs20 billion before the removal of floor to avert the possible sudden slump in the stock market. The broker, on whose wishes the benchmark KSE-100 index runs, said that the government had decided to bring the market to its normal trading parameters by January 2009 because the government was going to receive financial support of around $4-5 billion by the end of December, 2008 from the Friends of Pakistan (FoP) and other donor agencies including World Bank, Asian Development Bank and Islamic Development Bank. He said that the IMF has decided to provide Pakistan an initial tranche of $3.1 promptly from the approved $7.6b loan to support the country's local economic stabilization program. The approval of IMF loan had restored the confidence of other lenders who had all along been calling for the endorsement from the IMF before committing any support to the country. In light of this situation, the other lenders including FoP had been given green signal to the government to put money into the account of State Bank of Pakistan and the disbursement from other lenders is likely to take place by the end of next month. He pointed out that on October, 27, 2008, the IMF had intervened and restricted the government from lifting the floor mechanism because IMF was of the view that such measure of the government could pave the way for huge outflow of foreign investment, as the foreign investors have been waiting to offload their holdings once the floor rule was removed from the stock market. This would have further aggravating the existing crisis in the stock markets and the overall economy of the country as well, he added. The broker rubbished rumours that the IMF had suggested the government to get its approval prior to injecting market support fund. He said that government will launch the market support fund before the removal of floor, which according to him is likely to be removed in Jau-09. When told that the FOP ministerial meeting has been shifted to February 2009 and asked how the Pakistan could receive bilateral support from FOP before Feb, 2009, the broker said that all matters related to the financial support had already been sorted out between the concerned authorities of Pakistan and FoP The FoP were only waiting for the final approval of IMF program. Thus the financial support of $4-5b out of $ 9b from the FoP would come during the December 2008.