KARACHI, Nov 28: JPMorgan said on Friday that it was suspending its equities operations in Pakistan, where share trading has been on hold since Aug 28.

It said it would maintain its seat on the Karachi bourse and continue to serve clients through third-party brokers.

The US bank said some of its roughly 10 or 12 equities staff would be redeployed within the firm, and that its eight-person treasury services business in the country would continue to operate.

“JPMorgan will continue to expand its treasury services business in Pakistan, but at the same time reduce its presence in equities, while keeping its seat on the Karachi Stock Exchange,” bank spokesman Ray Bashford told Reuters.

Trading has dried up since the KSE board imposed an artificial floor on the 100-share benchmark on Aug 28 to stop a collapse in share prices that could have sent some investment firms to the wall.

This has resulted in pay cuts and job losses as no income is being generated at these firms, dealers said.

“We have had a 25 per cent pay cut,” said Shuja Rizvi, director of broking operations at Capital One Equities Ltd.

Many dealers fear they may be unemployed if the floor is not removed soon.—Reuters