KARACHI, Aug 18: The government seems set to introduce the proposed Continuous Fund Supply instrument in the stock market as part of its plan to steer the market out of crisis.

State Minister for Finance Mr Omar Ayub Khan and Chairman of Securities and Exchange Commission of Pakistan Dr Tariq Hassan along with Commissioner (Securities) of SECP Mr. Shahid Ghaffar had a meeting with State Bank Governor Dr. Ishrat Husain at his office here on Thursday. SBP Deputy Governor Mr Tawfiq A Husain was also present in the meeting.

Sources close to the session told Dawn that the meeting discussed how to end the stock market crisis and firmed up certain proposals of the experts committee set up earlier for this purpose. They said the participants of the meeting agreed in principle to introduce CFS as recommended by the experts committee headed by chairman of Pakistan Banks Association Mr. Shaukat Tarin. The sources said the meeting also decided in principle to lengthen the period of future contracts from 30 days to 60 days, 90 days and 120 days.

Mr. Omar Ayub declined to make any comment on the outcome of the meeting when reached by Dawn over telephone.

A difference of opinion between the three bourses of the country and their regulator the SECP over how to revive the sagging stock market has taken its toll on the market sentiment forcing Prime Minister Shaukat Aziz to intervene in the matter.

The prime minister is expected to meet the officials of Karachi, Lahore and Islamabad stock exchange at his office in Islamabad on Friday evening.

Before that the boards of directors of the three exchanges would meet the SECP chief at his office to discuss which recommendations of the Tarin committee could be implemented at the earliest to steer the market out of the crisis. Sources in the KSE say that introduction of CFS and lengthening of the future contract periods would be on the top of the measures that the bourses would like to get implemented.