One local, three foreign investors interested in PSX

[Max Pain]

There is no rule on any stock market. In third world countries, like India and China and Pakistan, stock markets are tools for the rich and gambling for others. Remainder of the global stock markets run on Investors Confidence (one's ability to feel comfortable in making investments), based on the market conditions. And the most important out of that, is the Political Stability and Economic friendly nature of a system. Pakistan has started to show both and that's why the super growth in the stock market. All other versions and comments, are versions and comments. No touch of reality to it.

Agreed,
so do you think this pattern will continue and the growth will continue cuz of the recent policies?
or do you think more needs to be done to woo more investors

 

[DJ_Viper]

Agreed,
so do you think this pattern will continue and the growth will continue cuz of the recent policies?
or do you think more needs to be done to woo more investors

There are two questions in your post and I'll answer it with two slight variations:

- Sustaining the existence growth (both the stock market, and the economy). For this, you must maintain the democratic process, and the civilian system which started, implemented and worked on reforms with many countries and institutions, to initiate the growth. Any change in that, will deflate investor's confidence and the next logical step for the Western investors will never take place (which is to build confidence from the stock market gains and go heavy on investing billions more into the Pakistani economy, as soon as the electric issue is resolved and the entire industry can be run with uninterrupted power supply).

- Future Growth: Yes, if the political system finishes up its term, no coupe, damaging political unrest and increase in terrorism is seen, this trend could continue for the next 20-30 years, resulting in Pakistan getting to top 12-13th global economy.

In fact, starting 2018, you'll see your economy on fire in terms of high growth and investments from many nations. But again, you have to keep your house in order, to allow others to feel comfortable in coming to it and putting their money inside your home knowing that their lives, and their money will be safe.

Just like you, yourself will avoid dangerous places and giving your money to where it may not come back.

 

[Max Pain]

There are two questions in your post and I'll answer it with two slight variations:

- Sustaining the existence growth (both the stock market, and the economy). For this, you must maintain the democratic process, and the civilian system which started, implemented and worked on reforms with many countries and institutions, to initiate the growth. Any change in that, will deflate investor's confidence and the next logical step for the Western investors will never take place (which is to build confidence from the stock market gains and go heavy on investing billions more into the Pakistani economy, as soon as the electric issue is resolved and the entire industry can be run with uninterrupted power supply).

- Future Growth: Yes, if the political system finishes up its term, no coupe, damaging political unrest and increase in terrorism is seen, this trend could continue for the next 20-30 years, resulting in Pakistan getting to top 12-13th global economy.

In fact, starting 2018, you'll see your economy on fire in terms of high growth and investments from many nations. But again, you have to keep your house in order, to allow others to feel comfortable in coming to it and putting their money inside your home knowing that their lives, and their money will be safe.

Just like you, yourself will avoid dangerous places and giving your money to where it may not come back.

I see,
so the bottomline is, ensuring political stability and sustaining that pattern while minimizing unrest and terrorism,
Fair assessment.

 

[LA se Karachi]

Isn't 40% a bit much to give up? Wouldn't 20-30% suffice?