July 12 - July 18, 2004  
ISSUE # 28  

Insurance companies not only play the vital role of risk hedging but also are the major players in capital market. Despite more than fifty years of existence in the country, they have not been able to create a culture whereby people acquire insurance cover willingly. Almost all the business is generated out of compulsion. With the deregulation of tariff determination and cut throat competition a number of companies are posting underwriting losses. A serious impediment in the growth of insurance is the general perception that the conventional insurance business is not in conformity with Sharia..



Economic Managers of Pakistan, headed by the Finance Minister Shaukat Aziz deserve a compliment for their outstanding performance during the financial year 2003-04 and not only achieving but in most cases surpassing the target fixed for the year. Growth rate (GDP) reached 6.4 percent against estimated 5.3 percent; export exceed $ 12.3 billion against 12.1 billion and revenue collection reached about Rs. 510.6 billion against an ambitious target of Rs. 510 billion.

The launch of Pakistan Petroleum Limited (PPL) shares Initial Public Offering (IPO) of 15 percent shares, which includes 5 percent additional shares through green shoe option is going to be the turning point in the country's Privatization Program, especially the stock market.