KARACHI - The government-run financial institutions and other lending institutions have agreed to buy shares from the 34 suspended brokers, who are unable to make payment of the Continuous Funding System, The Nation learnt on Friday. The financial institutions, however, would buy the shares with the condition that they would pay 12.5 per cent less than the closing value of shares recorded on Wednesday (Dec 24), sources said. Sources said that some lenders and the borrowers have verbally to the above-mentioned option to settle Rs9.8 billion transactions carried out in the CFS market. This understanding was developed at an emergency meeting held at the residence of Securities and Exchange Commission of Pakistan (SECP) chairman Raziur Rehman here the other day. The KSE brokers, SECP officials and senior officials of the financial institutions also attended the meeting. It is worth noting that on December 23 National Clearing Company of Pakistan (NCCPL) had suspended 34 members from the trading system because of non-payment of the arrears. Resultantly, Prime Minister's Advisor on Finance Shaukat Tarin held a meeting with the brokers and representatives of the institutions in Karachi and asked them to settle down the issue that aimed at reducing the pressure from stock market and ward off the risk of default of the stock members. The financiers of CFS market and the government owned institutions would equally contribute the amount of the required fund, sources said. Senior officials of NCCPL, Karachi Stock Exchange (KSE), Mutual Fund Association of Pakistan (MUFAP) and some bankers attended the meeting. It is pertinent to mention here that the IMF had earlier barred the government from injecting Rs20 billion stock market support fund through the funds of public entities to bail out the brokers and investors of the stock markets. According to sources, most of the brokers are not sure about the implementation of this strategy of the government, as they have no faith in the promises of government. Brokers said that the purchase of securities at 12.5 per cent less than their rate would further hurt the confidence of brokers and investors and they have termed it their exploitation. They said that the new option would not be in favour of the brokers and the brokers would stand against this option. Sources further said that the participants of the meeting would again meet to set the final rules and regulations to settle this dispute.