Pakistan emerges as second best performing market in Asia

KARACHI: Despite security concerns, tense relations with the US and economic slowdown, Pakistan’s stock market has managed to rank as the second best performing market in Asia after Indonesia in 2011 so far, according to a Topline Securities research note.




Corporate earnings and reduction in interest rates helped equities so far in 2011 amongst the Asian Emerging and Frontier markets tracked by MSCI, adds the note.


Resurgence of US crisis coupled with headwinds in eurozone saw huge selling in global equity markets as risk-averse offshore investors moved to safe heavens. The MSCI All Country World Index has slumped by 8% in 2011 till October 18 on concerns about the world economy and the lack of any credible solution to Europe’s debt issue, the reason also why most Asian Emerging and Frontier markets have posted negative returns so far in 2011.


Moreover, except the Indonesian market, all markets in MSCI Asian Emerging and Frontier markets are down 5% to 39% with India and China, the two leading markets falling by 26% and 24%, respectively.


Interestingly, Pakistan with a fall of 5% is so far the second best performing market amongst these 12 countries.


Due to fear of another recession, the benchmark MSCI Word Index is down 8%. Emerging and frontier market indices also followed by falling 18% and 25%, respectively.


Published in The Express Tribune, October 20^th, 2011.

World Bank’s Report 2011, List of countries ranked on the basis of ease of doing business

Attached is World Bank’s Report for the year 2011 having list of countries ranked on the basis of ease of doing business.

Surprisingly, China is at number 79 in the ranking and Pakistan is at 83 (4 places behind China), whereas India is at 134 (51 places behind Pakistan!!).

 

I know it’s very likely for anyone to think, that because there are no regulations in place as such in Pakistan, doing business is the easiest thing here. You can give money to any government official and start your business as no proper verification is required and tax evasion is the easiest thing to do here. But when we talk about the World Bank, they have some really mature statistics and very serious parameters to make a report on.

 

I don’t say that we have improved much, nor are we the best in everything. We do lag behind in many things, but we are better than many others, especially from the ones we compare ourselves with.

Pakistan Zindabad!

Regards

One of the 180 Million Cornered Tigers
Pakistan.