On June 13, a presenter on a private TV channel took up an important issue regarding a letter written by the Transparency International Pakistan to the Securities Exchange Commission of Pakistan. The TIP has requested the SECP to investigate the Pakistan Stock Exchange Support Fund announced by the prime minister’s adviser on finance after a meeting with prominent brokers. The TIP sent this letter on receiving a complaint asking them to take action. The complainant said the Pakistan Stock Exchange Support Fund had been established to favour a few prominent brokers. Guests on the show were unable to respond to the issue in a proper way as the issue involved were not relevant to their expertise. The letter should be taken seriously and a proper response filed. The country’s rating in terms of perception of corruption depends on responding to such questions. Pakistan is currently ranked 117th among 175 countries. Pakistan’s avergae between 1995 and 2018 has been 109.04. It was an all-time high of 144 in 2005 and a record low of 39 in 1995. Transparency International is the largest anti-corruption network acting globally. Its headquarters is in Germany. It is an international, non-political, non-partisan, non-profit, non-governmental organization having 90 national chapters working around the globe. TI-Pakistan is one of the national chapter based in Karachi. It was formed in February 2001 and registered as an NGO under the Pakistan Trust Act 1882 in May 2002. The TIP has previously written 152 letters in relations to the Securities Exchange Commission of Pakistan. These letters are frequently investigated and replies issued with respect to the allegations. Investors lost billions of rupees. A government intervention through support fund seems needed The letter calls for an investigation into an insider trading complaint in Pakistan Stock Exchange through Market Support Fund, which according to the letter, is meant to favour certain brokers. The letter is based on a complaint received by the TIP where seven allegations were made. It says advisor to PM for finance, on May 17 phoned the National Investment Trust chariman and asked for creating Rs 20 billion funds in a meeting with businessmen held in Karachi after a few brokers who already have large stocks of state owned enterprises shares, started trading in these shares, and jacked up the prices artificially. The gvernment own only 26 per cent of the shares in these SOEs. The purchase of these shares will only benefit the private shareholders. Some of the allegations need corroboration with available financial data. The government’s ownership of the shares in three SOEs averages between 36 per cent and 53.28 per cent. Another question is whether two of the businesses qualify as state-owned or not. The shareholding data shows that the Government of Pakistan holds substantial ownership. This is borne out in the audited financial statements of the companies available on their websites. The need for a support fund and its impact on the PSX should be observed carefully before looking at the allegation that a few stakeholders gained from it. Pakistan is feeling the heat of an economic slowdown. Investors’ confidence has been shaken and selling pressure has been observed in the market. The investors have lost billions of rupees. A government intervention through support fund seems needed. The Stock Exchange did behave behave better following the news and the index showed that the speed of losing capital investments was slowed. Whoever owns more stock, faces the greater risk. However, placement of the fund through intervention should be taken very carefully. Loose control can create a mess. The Stock Exchange represents the face of the economy. A growing or stable market may attract more investors and bring liquidity to the economy. It also encourages non-listed companies to list on the stock exchange for cheaper liquidity than borrowing from banks. It is therefore advisable that the TIP request for investigation should be responded to. The writer is a chartered banker in UK