Mar 07 - Mar 13, 2005 
ISSUE # 10 

With each passing day new records are being created at the Karachi Stock Exchange, only to be broken on the following days. The rally is being driven by five big stocks and also supported by other quality scrips. Now all eyes are set at the KSE-100 breaching 10,000 level. The record number of 1.4 million applications received in response to KAPCO's initial public offering clearly indicates the level of investors' confidence. The government's policy of 'Privatization for People' is also helping in broadening the investors' base in the country.

President General Pervez Musharraf's statement that the provinces share in the federal pool of revenues should be increased to 50 percent is likely to give a consensual look to the 6th award of the National Finance Commission (NFC).



The ruling Pakistan Muslim League has also proposed that the population should not be the sole criterion for determining the share of the provinces in the divisible pool. Other factors such as poverty, backwardness and special needs of smaller provinces, particularly Balochistan should also be taken into consideration while collecting provincial shares in the divisible pool.

The government has decided to streamline the Engineering Development Board (EDB) and Pakistan Industrial Development Corporation (PIDC), the two significant organizations with a view to assign greater role to the engineering sector as the engine of knowledge-based growth to make Pakistan an engineering hub of the region.