CIT not for earning profit: Finance Minister

Finance Minister Dr Yuba Raj Khatiwada has said the way would be paved for the Citizen’s Investment Trust (CIT) to expand its investment in the capital market.

He expressed his hope the company will increase its investment in the capital market through its subsidiary companies which would help the company for its strengthening in addition to the market expansion.

Taking part in discussions today about the bill to amend the CIT Act, 2047 BS in a meeting of the Federal Parliament’s Finance Committee, he said the government was planning to upscale CIT investment in capital market by establishing its auxiliary companies.

"The CIT is an institution for the capital market, not currency market," he said, adding the necessity of a ‘market maker’ for the same has been realized and CIT’s three billion capital is enough for so," he said.

As he said, CIT established for the interest of investors is not like of a commercial bank and a trustee.

The CIT is a general profit-oriented public organisation which is supposed to invest its capital safely, according to the Minister who insisted on the safe investment. "It should not be compared with other profit-making organisations."

He advised the CIT and Employee’s Provident Fund to not come up with programmes similar to that of Social Security Fund.

The meeting continues clause-wise deliberations on the bill.