Pakistan Banking Council
The year 1991 saw a great boom in the stock market in Pakistan. This was a natural result of the far-reaching reforms made by the present government in opening the shackles from the economy. Among other measures, as the restrictions governing movement of foreign exchange regulations diminished, there has been a net inflow of foreign exchange into Pakistan, mostly from Pakistanis living abroad. With growing confidence in the seriousness of GoP to go further down the road to economic emancipation, money that had been domestically hoarded has also come back into the market. With bucketfuls of money being pumped into the acquisition of shares, the stock market became extremely bullish. This has been further accentuated by the wide ranging reforms in the financial market, resulting in the opening up of many financial institutions, among them Modarabas, leasing companies, private banks, etc. Every new offering in the stock market obtains a premium for a unit share, now anybody who has some money salted away (and has the time and inclination) and applies for shares in new public ventures, manages to clear a profit of between 150-200% on his/her original capital if the application is successful in the computerized drawing of lots. In a manner, it is legalized gambling.