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The recently-released Global Economic Conditions Survey for 1Q CY14 by the Association of Chartered Certified Accountants and Institute of Management Accountants says "business confidence in Pakistan has been on the rise almost steadily for a year-and-a-half and is now higher than at any point in the last three years." But, there is no need for jubilation; for, there is more to it than what meets the eye.
Pakistans insurance sector has remained the neglected child of successive governments. But, now the government seems to have realised that the sector needs to be given a boost. Awami Insurance Scheme is one such initiative that the government is planning to launch shortly.
Contrary to what many had hoped, textile industry hasn had a good quarter. The industry wide turnover remained on the sluggish side in the third quarter ending March 2014, whereas costs remained strong resulting into lower net profits and a reduction in profit margins.
The recently released financial results of Atlas Honda Cars (Pakistan) Limited have declared an EPS of Rs7.25 for the year ended March 31, 2014, indicating a leaping growth of over 330 percent compared with the same period of last year.
Some things will not change. Be it the PPP government then or the PML-N government now, the axe eventually falls on development budget whenever "fiscal space" is in order.
Scared of the IMF and inflating the fiscal deficit, the government has decided to use the tried and tested ploy of borrowing from the commercial bank to partially help reduce the circular debt. This is peanuts in comparison to the effort made during the same time last year; yet, it is indicative of how things stand.
What made KSE-100 rise by more than 300 points in a single day last Thursday? Well, to those who were sleeping, it was the news of the inclusion of four new Pakistani companies into MSCI Frontier Market Index.