number of events, particularly the May Crisis, have changed the
complexion of the market. Analysts forecast for another bullish run
once Pakistan enters into a long-term funding agreement with the IMF
and resolves the IPPs controversy. At the same time they also warn
about eroding earnings potential of listed companies due to cost
pushed inflation. The cover story includes an interview with chairman
KSE, contribution by CDC and the role of brokerage houses in
determining direction of the market.
Pakistan, having rich resource potential worth 200
trillion cubic feet of natural gas and six billion barrels of oil offers
attractive prospects for investors. So far, only a small part of these resources
and remaining potential should be more than sufficient to challenge the minds of
explorers, it is estimated that opportunities worth $10 billion exist in the
energy sector of Pakistan.
Much has been done by the present government to
encourage the internet use and increase the volume of software exports. Much,
however, remains to be done to increase the use of personal computer primarily
due to the prohibitive prices to meet the demand which is met entirely through
imports. It's time to look beyond internet use to encourage local assembly of
PCs and the needed components to bring the prices to an affordable level for the
creation of real IT culture in the country.
The coastal cities of Balochistan, despite having
enormous potential for investment are not fully exposed to the foreign
investments so far. These future export-processing zones can be developed for
defence production. These zones should be designed in a manner that availability
of all infrastructure facilities required for producing weapons or components
were ensured. Ports like Gawadar, Pasni and Ormara have the potential to become
the hub of economic activity in this region.