Pakistan Stock Market is World's Best Performer Over 1 Year & 5 Years

[RiazHaq]

Pakistan's KSE100 (Karachi Stock Exchange 100) index closed the year 2016 as the world's best performing stock market index over one-year and five-year periods, according to data available from Bloomberg. It has not only outperformed India's Sensex index but also the Morgan Stanley Emerging Markets index.

Source: Bloomberg

Pakistan's key index KSE-100 has rocketed up nearly 46% in 2016, far outpacing India's Sensex's 2.57% rise and MSCI emerging market's 8.42% increase. Similarly, over 5 year period, KSE-100 has soared 321% vs India's Sensex rise of 72% and Morgan Stanley emerging market index decline of 7.72%.

Source: Bloomberg

Pakistani stock market gains are driven by multiple factors. Dramatically improved security has brought investors and accelerated the nation's GDP growth. Adding to that is the optimism accompanying Morgan Stanley's decision to bring Pakistan back into its emerging market index that has spurred more buying by foreign index fund managers.

Other major indicators such as rising cement and energy consumption as well as growing sales of motorcycle and automobiles. A big driver of these improvements is the Chinese commitment of more than $50 billion to finance China Pakistan Economic Corridor (CPEC).

China-Pakistan Economic Corridor (CPEC) is expected to add over 2 million direct and indirect jobs to Pakistan's economy and boost the country's GDP growth rate to 7.5%. If all goes well and on schedule, of the 21 agreements on energy including gas, coal and solar energy 14 will be able to provide up to 10,400 megawatts (MW) of energy by March 2018. According to China Daily, these projects would provide up to 16,400 MW of energy altogether. In addition, there will be roads, rail tracks and oil and gas pipelines stretching thousands kilometers to connect Pakistan's Arabian sea ports to landlocked Western China.

After years of underinvestment and slow growth, Pakistan is finally seeing a lot of investment and development activity. Pakistan's economic recovery is in full swing with double digit growth in multiple industries, including auto, pharma, chemicals, cement, fertilizers, minerals, etc. It is expected to pick up steam over the next several years with new investments on the back of China-Pakistan Economic Corridor related projects. The challenges to sustain this growth ranging are many, among the biggest are continuous improvement in security, maintaining political stability and timely execution of projects.

http://www.riazhaq.com/2016/12/pakistan-stock-market-is-worlds-best.html

 

[miafridi]

All of this was because of the Chinese investment and the Low oil prices in the international markets(which for any country who imports more was a blessing in disguise and so it was a blessing for Nawaz Government right from the start of their tenure)..

As for the Performance of Government we know that Under this government there has been reduction in Tax collection, deterioration of Industrial performance(due to shortage of gas and Electricity which was promised to be provided within 3 years), increased inflation rate.

http://www.siasat.pk/forum/showthre...f-inflation-from-1-7-to-3-9-State-Bank-Report

And How can we see a good performance from this government while it couldn't afford to make the NAB, FIA independent because of their own vested interests and the same NAB is damaging the country by letting people with 40 billion corruption for only 2 billion, and this is just one Case..