The Hottest Stock Market in the World...

According to the Time Magazine, Pakistan's Karachi stock market (The Karachi 100 index) has been the best performing stock market in the world, for year 2002. The market is still gaining more ground and has crossed the 3000 mark on May 15th, 2003. Pakistan stocks have been 54% higher in the year 2002 alone, and were far above the second fastest growing market of 19% growth of Thailand.

Pakistan's economy is expected to grow 4.5% in fiscal 2003 and 5% in fiscal 2004, according to a major Asian Development Bank (ADB) report released April 28th, 2003.

The optimism for the coming years is based on an improved outlook for the agriculture sector and industry, led by the textile and consumer durables industries. The service sector is expected to maintain a growth rate of 5.5%. Increased availability of water and water-saving techniques and changes in cropping patterns to cope with drought should boost agriculture and hydropower generation. The textile industry is better placed for increased production after heavy investment in the past two years. Domestic demand is increasing due to large remittances and an associated increase in construction activity as well as aggressive marketing of consumer credit by financial institutions.

The modernization of the textile industry of the past years has started showing results with a substantial increase in the industry's output and in export volumes. Overall exports are projected to expand 12% in fiscal 2003 and 10% in fiscal 2004.

Imports are expected to soar 14% in fiscal 2003 and 10% in fiscal 2004, doubling the trade deficit in fiscal 2003 from the previous year.

BusinessWeek's Correspondent Naween A. Mangi in Karachi, recently wrote in the Businessweek about Pakistan's homegrown banks are becoming viable due to lower interest rates, Pak Rupee gaining strength against the U$D, Pak Economy becoming stronger. ....to read the entire.

Another article form the Businessweek News suggest that the Pakistani market is one of the most fertile grounds for the Funds and managers should look at this market closely. While the U.S. mutual-fund industry continues to be buffeted by a declining stock market and jittery investors, in Pakistan, things have never been better, according to the country's Mutual Fund Assn. The benchmark KSE-100 index gained an impressive 112% in the last many months, making Pakistan's stock market one of the best performers worldwide and helped bring new mutual funds to market.

Pakistan Exports and Some Services:

Pakistan is recognized in the world market as a producer of quality cotton, leather, wheat, rice, sugar, different fruits, and sports goods.

In the football World Cup, Pakistan supplied a large number of the footballs that were used in the tournament. This was recognition of producing the finest-quality footballs in the world.

Pakistan also produces clothes and jeanswear for a large number of multi-nationals and brand-names, such as Levi's, Guess, Tommy Hilfiger, Nike and Reebok. A large number of smaller companies in the USA and Europe also import Pakistani cotton for their products. Wool is also exported from Pakistan to a large number of European countries and to the USA.

Pakistan is a regular exporter of wheat and sugar to its Asian neighbors. It is also a leading world producer of mangos, apples, oranges, pears, apricots and plums. Pakistani products are recognized worldwide for their quality and production standards.

Information Technology Gartner consulting firm referred to Pakistan as the third biggest upcoming software industry after China & Russia. Pakistan Software Export Board (PSEB) has established various technology parks in the country. The launching of PAKSAT-I (Pakistan satellite) in January 2003 enables Pakistan to provide commercial services such as Internet backbone, remote Internet access, business communication, broadcast services and thin route telephony. Click here to read about Pakistan’s IT companies success stories.

Pakistan maintains untapped potential of rich natural resources i.e. Gold and Gemstones, Oil and Gas, Coal, Thar, Copper, etc,,. Due to large deposits of Copper in Balochistan, experts believe Pakistan has the potential of becoming one of the largest Copper exporters in the future. Copper has several different applications in modern technology.

Pakistan Steel Mills, Pipri. One of the few large steel producing plants in the world. They are in the process of enhancing their capabilities, presently looking for investments.

Tea, foreign companies are taking keen interest in setting up tea processing plants in Pakistan, these include Tetley products. Sri Lanka has agreed to sell their tea through Pakistan. The market for tea has grown substantially in the United States and multiple other Countries all over the world.

Some other products for export made in Pakistan

Infrastructure Build up and Energy:

Pakistan has also laid a great deal of emphasis on the development of economic infrastructure, for which the Islamabad-Lahore Motorway (M-2) was constructed. A Karachi-Lahore Motorway and Peshawar-Islamabad Motorway will enhance this further. This is a necessity to link all the provinces together and smoothen the flow of goods and workers.

The Port Qasim Project has also been given greater emphasis to develop another world-class port to assist in production and export of goods. Pakistan's strategic location can enable Port Qasim to provide valuable services in world and sea trade

The Gawadar Port being built in Balochistan province, its expected completion in 2004. The Export of oil through Gawadar Port represents the shortest possible route to the landlocked oil-rich Central Asia states. In 2002, Pakistan, Afghanistan and Turkmenistan signed an agreement facilitating the laying of a $ 3.5 bn gas pipeline from Turkmenistan's gas fields to Pakistan through Afghanistan. TAP, Turkeministan Afghanistan Pakistan natural gas line, this $3.5 billion project will benefit not just the countries of the region but also the European nations. They can also tap LNG (Liquefied Natural Gas) through supply ships that can berth at new Port in Gwadar. Energy remains the main source to ensure survival and growth of Industries.

The Pakistani Government has directed establishment of a large Export Processing Zone (EPZ) at Gwadar. They are hoping that a large number of foreign and Pakistani investors will establish industries, warehouses and services in EPZ.

India Iran Oil and Gas line worth $2.0 billion, proposed to run through Pakistan, is an extremely important project to help with India's energy crisis, and need to help India growing industry. Discussions and evaluation of this project remain in progress.

Good News About the Pakistani Economy:

Standard and Poor's further upgrades Pakistan's status:

Pakistan's stock with the international financial community has gone up a notch, improving its chances of securing much-needed inward investment. The good news comes in the form of an upgrade from credit rating agency Standard & Poor's, which on Thursday announced that it was taking a more positive view of Pakistan. On top of that, more and more money from overseas is passing through the mainstream banks rather than through informal channels, S&P said.

This could boost confidence among foreign investors and lead to more investment, according to analysts.
S&P's decision to upgrade Pakistan's debt marks a turnaround in the country's fortunes. Its rating now betters that of Turkey, Uruguay and Venezuela, and is on a level with Ukraine's

International Monetary Fund Praises Pakistan's Performance

George Abed, the IMF's new Middle East director and in charge of its Pakistani operations, said he was "very pleased with the record of Pakistan in the past three years of continued macroeconomic and financial stabilization".

He added, "We have begun to think of Pakistan as a country of promise and a country of potentially high rate of growth"

BBC Reports: "Pakistan Defying the tough times for the world economy"

BBC Correspondent Paul Anderson reports:
" Scan the business pages of Pakistan's main newspapers and there is scarcely a sour note to be found. Sugar output hits record, they trumpeted in late April. Manufacturing sector grows by 8%. Karachi Stock Exchange hits new high."

Businessweek News on Pakistani Market a Fertile Ground for Funds and Investors. and about the strengthening of the Banking Industry.

Pakistan and United States as Business Partners:

Pakistan-United States Business Relationship

US Pakistan Business Council

Investing in Pakistan:

Investing in Pakistan:

Research on Pakistani Economy:

E-Commerce in Pakistan

Pakistani Banks Show Growth and Strength

Pakistan as a Large Consumer Market:

According to the US Bureau of Census Pakistan's mid year population in 2004 will be: 153,705,278 making it the 6th most populated country in the world and one of the largest consumer markets.

The Asian Tiger:

"We Americans want this complex package of structural reforms and fiscal disciplines to succeed in its worthy goal of making the Pakistani economy a new Asian Tiger". Remarks by Thomas W. Simons, Jr.
Former U.S. Ambassador to Pakistan, as prepared for delivery at The Punjab Club Forum for International Relations, Strategic Technical Studies Lahore.

Pakistan's strengthening banking sector, increasing sophistication in industry, increasing investor confidence, foreign investments, increasing trade with major world economies continues to improve. Manufacturing sector has already hit 8% growth, the sugar output has also hit record high levels. The Karachi Stock exchange hits highest records crossing the 3000 mark on May15th, 2003. All of these indicators strongly suggest that that Pakistan is well on path of becoming the Asian Tiger..

Summary of the Pakistan Economy:

Updated Daily Pakistan Business News:

Some More Web links:

Pakistan Economist:

Business Recorder:

Board Of Investment:

Basic facts about Pakistan