FIA probes 27 listed companies, brokers for insider trading, money laundering

ISLAMABAD: HUM Investigation Team (HIT) has learnt that the Federal Investigation Agency (FIA) has started an investigation into alleged money laundering and insider trading activities of 27 companies.

All companies under probe are major players on the Pakistan Stock Exchange (PSX) companies. As per HIT sources, investigation has also been initiated against the brokers of these companies.

The money laundering investigation has been launched on the recommendation of the Securities and Exchange Commission of Pakistan (SECP). Reportedly, the commission carried out its own investigation prior to forwarding the case to the FIA. The SECP also submitted an investigation report to the FIA ​​on the alleged inside trading and money laundering of these 27 companies.

The documents seen by HIT show that these major companies and brokers were allegedly involved in market manipulation and inside trading at the stock exchange. Such activities of these companies were also allegedly responsible for causing illegal fluctuations in the stock market.

Also read: 12 importers face probe over alleged Rs477.3 million money laundering

PSX has seen notable fluctuations in the recent past, with the bourse showing a consistent decline after achieving several historic highs towards the end of previous calendar year.

FINANCE MINISTER OPTIMISTIC ON ECONOMY

Meanwhile, Federal Finance Minister Muhammad Aurangzeb has said that the country’s economy is on the mend. “Economic indicators are showing a positive trend, and the country’s economy has stabilised compared to 2023,” he said.

The finance minister shared that the government is operating on an agenda of sustainable economic stability. Speaking about the recent announcement by the State Bank of Pakistan (SBP) decreasing the policy rate, the finance minister said that the move will increase investor confidence in the local market.

He added, “The country’s foreign exchange reserves have improved, and domestic remittances have also increased.” The minister shared that a fruitful and useful discussion was held with the Pakistan Business Council (PBC) delegation. “Preparations for the upcoming budget have begun,” he added.