Jan 27 - Feb 02, 2003   
ISSUE # 04  

The best performing market of the world plunged into crisis mainly due to Badla trade. The last minute efforts helped in saving some of the brokers facing eminent default. The massive erosion of market capitalization not only caused huge losses to investors but also breached the confidence in the market. The much talked about risk management system prevailing at the KSE failed in controlling the emerging bubble. The situation supports the perception that both the regulators and investors are hostage of market manipulators.





The shortage of water is costing the economy in many ways. The under cultivation lands of major crops are being reduced. The cost of thermal power is increasing due to increase in oil prices. The demand for potable water is increasing gradually with the increase of population. To address all these issues effective water management through construction of dams is the need of the hour.


The strong economic fundamentals have encouraged the economic managers to get rid of the foreign loans especially the IMF program to avoid conditionality of the donors. It is for the first time that the financial health of the country is in a position when the people at the helm of affairs are talking about getting rid of the debt trap. It is altogether a different position from the past when all efforts of the economic managers were made to pursue the donors for new loans merely for debt servicing.