July 05 - July 11, 2004  
ISSUE # 27  

The policy of the federal government to use housing and construction industry as the engine of economic growth has started yielding positive results. However, lack of direction and compatilibility between the federal government and provincial government is feared to prove counter productive instead of producing better results. the recent step taken by the provincial government of Sindh of imposing a condition of NOC from Karachi Building Control Authority has severally damaged the momemtum of growth in the housing and construction industry.




The official visit of the Prime Minister of Singapore, Goh Chock Tong, along-with a strong delegation, to Pakistan last week is being viewed as highly important development as it has laid down institution parameters for a sustained development and closer cooperation between the two counties in many fields. It has led to a qualitative upgrading in relations of the two countries.

Under the GoP's divestment programme shares of PIA were offered to general public. Lately the quoted price of scrip went far below the offer price. There are growing concerns about profitability of the company as well as expected return to shareholders. In the following effort has been made to highlight the opportunities and threats. Injection of fresh equity and reprofiling of debt may be good but unless operating margins improve the national carrier will not be able to pay a modest dividend to shareholders.