Karachi: Government is likely to extend the maturity of the PKR 20 bn three year loan given to the National Investment Trust (NIT) for creating a stock market support fund in 2009.
According to Alfalah Securities Limited, in January 2009, financial institutions loaned PKR 20 bn to NIT at KIBOR +1% interest rate. The loan was provided for three years term, which will complete in January 2012. National Bank of Pakistan had provided PKR 7 bn; Employees Old Age Benefits Institution (EOBI) lent PKR 5 bn; State Life Insurance Corporation contributed PKR 2.5 bn and other banks the remaining PKR5.5 bn of total PKR 20 bn.
This fund was injected in the stock market to stabilize it for which NIT constituted NIT-State Enterprises Fund (NIT-SEF) and purchased shares of eight state owned entities. Entities were Oil and Gas Development Company; Pakistan State Oil; Pak Petroleum Limited; Sui Northern Gas Pipeline Limited; Sui Southern Gas Company; Kot Addu Power Company; National Bank of Pakistan; and PTCL.