May 22, 2008	Thursday	Jamadi-ul-Awwal 16, 1429

KARACHI, May 21: The Board of Directors of the Karachi Stock Exchange is all set for a meeting with the economic team of the government in the next couple of days, a director on the board who asked not to be named said.

The KSE expects to give ‘presentation’ to the economic advisory council constituted by Prime Minister Yousuf Raza Gilani. Finance Minister Naveed Qamar is at the head of the council, while Shaukat Tareen, ex-chairman of KSE, and is its convener.

Market participants were excited on the prospect of being heard by the government before the budget.

Earlier former Finance Minister Ishaq Dar had dillydallied on meeting the KSE representatives. “We would discuss the economy, the stock market and the taxation issues,” said the KSE director.

Analysts thought that the item on top of the agenda would evidently be the Capital gains Tax (CGT).

The CGT exemption is to expire on June 30. The market has been clamouring for the continuation of the exemption, though noises in support and against the levy are being heard from various quarters.

“In case of a favourable decision by the government, the market could recover from its bearish trend, which has seen the KSE-100 index dip by 2,000 points in about a month,” said the KSE director.

The bourse was officially keeping quiet on the upcoming meeting with the government’s economic team, but the news had filtered into the market.

Many traders thought that it could be one of the reasons for the KSE index’s pullback on Wednesday, from its steep decline.

The KSE-100 index, after many days of descent, closed with a rise of 71 points on Wednesday.