pakistan features among worlds top ten stock market performer

ISLAMABAD: With a benchmark index that has gained 16 percent in the last 12 months Pakistan has been among the world’s top 10 performers according to a recent Bloomberg report. The report highlighted improvements in Pakistan’s economicperformance in terms of trade, investment, industry, inflation, construction growth to name a few, during the Nawaz Sharif led PMLN government.The report noted that Prime Minister Sharif ‘ who took power inMay 2013 ‘ has boosted infrastructure spending by 27 percent to Rs.1.5 trillion for the fiscal year starting from July 1.Pakistan was making significant progress in meeting targetsunder its 6.6 billion loan program the International MonetaryFund said in May.The lender predicted a 4.5 percent growth in the economy inthe year starting July 1 following a 4.1 percent expansion lastfiscal year the report added.According to the report easing prices are also set to buoyconsumer spending. Inflation in South Asia s second largest economyslowed each month this year through April as transport and foodprices fell prompting the central bank to cut the benchmarkinterest rate in May to the lowest level in 42 years.It said Moody’s Investors Service upgraded Pakistan’ssovereign credit ratings for the first time since 2008 in June butsaid stalling the ongoing IMF program or an unstable politicalenvironment would be credit negative.The report noted that China was standing by Pakistan as thenation’s long time strategic ally.In April, Asia s largest economy, China signed deals for $28billion of investments in Pakistan as part of a planned $45 billioneconomic corridor that includes power plants and dams.The development in cities and smaller towns is trickling downand is good news for smaller contractors as well the report said.’Business has been very good and there s no doubt my work hastripled in five years,’ the Bloomberg report quoted Mohammed HassanBakshi 43 a builder in Karachi. There s huge demandfrom the middle class for affordable housing. Builders in Pakistan are seeking technology from China to helpcut down construction and project execution times to as little assix months from as long as five years he said.The nation s construction sector grew by 11.3 percent in theyear through June 2014 almost double the 5.7 percent target according to central bank data.Pakistan is a reform story like neighboring India s but onlybetter said Renaissance’s Robertson.All of this is a big change on 2013 he said. Credit ratingagencies are beginning to recognize this. According to the report the construction boom also marks thenation s emergence as a frontier market after Prime Minister NawazSharif averted a balance of payments crisis with help from theInternational Monetary Fund and resumed selling stakes in statecompanies.He (Nawaz Sharif) is boosting infrastructure spending as the$232 billion economy expands at the fastest pace since 2008 amidthe cheapest borrowing costs in 42 years it said.It is the best undiscovered investment opportunity inemerging or frontier markets said Charlie Robertson London basedchief economist at Renaissance Capital Ltd.What’s changed is the delivery of reforms privatization an improved fiscal picture and good relations with the IMF. D.G. Khan Cement Co. controlled by billionaire Mian MuhammadMansha and Cherat Cement Co. have announced expansion plans whilesteelmakers are selling shares.Amreli Steels Ltd. the nation s biggest maker of steel barsused in construction is planning a share sale to help doublecapacity. Mughal Iron & Steel Industries Ltd. completed an initialpublic offering in April.Pakistan’s cement industry has rallied 57 percent in the pastyear more than triple the gains by the benchmark according to datacompiled by Bloomberg.D.G. Khan Cement the third largest maker of the constructionmaterial has jumped 62 percent and Maple Leaf Cement Factory Ltd.has surged 161 percent and Fauji Cement Co. Ltd. has gained 81percent.The construction industry is seeing a boom and there isstill juice left in the cement rally said Mir Muhammad Ali chiefexecutive officer of UBL Fund Managers Ltd. that handles about 56billion rupees ($550 million) in stocks and bonds in Karachi.