ISLAMABAD, July 7: The stock markets’ collapse in March 2005 inflicted $13 billion losses upon investors, says finance advisor to the prime minister Dr Salman Shah.

He was addressing at a press conference here on Friday. He was accompanied by Minister of State for Finance Omar Ayub Khan and Securities and Exchange Commission of Pakistan Chairman Dr Razi.

Dr Shah said the process of capital and stock markets’ reforms would continue.

He said that the forensic report by a foreign firm regarding the stock market crisis would be available in 12 weeks, adding that people involved in it would be dealt with severely.

Dr Salman Shah said that the National Assembly’s standing committee on finance had discussed the Stock Market Crisis Report in the presence of former SECP chairman Tariq Hassan. “All aspects were discussed and a future strategy was chalked out,” he said.

“Accusations levlled by Tariq Hassan were discussed. Proposals regarding forward financing by Shaukat Tareen’s committee were implemented on Aug 21. After that, activity in the market had returned to normal. Members (also) reviewed the report’s aspects related to the market (stock markets),” he told reporters.—Online

Our staff reporter adds: Dr Salman Shah said that the finance ministry had not pressed Dr Hassan to step back from phasing out CoT with margin financing.

In fact, he said, a committee of the SECP and State Bank under Shaukat Tareen had proposed that CoT be phased out with Continuous Financing System (CFS) to ensure liquidity.

Mr Raziur Rehman rejected allegations that he had been one of the AKD consultants.