The Karachi Stock Exchange (KSE) accomplished a feat on Tuesday when its index, the KSE-100, crossed three consecutive physical barriers in one day. It posted the largest single sessions rise by gaining 226 points, as trading volume rose to 1.029 billion shares and the index closed at 6710.03, a new record.
What makes the boom in the share market particularly significant is that it has been driven almost entirely by local investors. Their confidence in the market was amply demonstrated earlier in the massive over-subscription seen in the Oil and Gas Development Corporation (OGDC) and the Sui South Gas Company (SSGC) share offers last year.
Analysts have, however, warned that the market had entered a high-risk area since the week's gains are based largely on speculative activity. In this, it is now up to the government to protect the interests of small savers and investors who would be the major losers if there is a reversal in fortunes in the near future.
One would assume that such an impressive performance of the bourse would attract foreign investors since the government has already relaxed regulations on movement of capital.
But they are conspicuous by their absence. The government needs to do much more to get the foreign capitalists invest their money here. Foreign investors point to the political uncertainty that grips the country, the deteriorating law and order situation with frequent incidents of violence, and the rise in corruption as some of the factors that discourage them.
It is about time the government took these issues seriously, otherwise the economic turnaround we expect on the basis of our fundamentals will pass us by if we are unable to attract foreign investment needed to give the much needed boost to industry and economic activity.
Transport crisis
Controversy surrounding a franchised bus company plying in the twin cities and the provincial government's contract with it allowing it to monopolize certain routes has dogged the transport sector in Islamabad and Rawalpindi for several years now.
The result has been disruption every now and then in the smooth running of the public transport system, causing considerable hardship to commuters. The latest disruption occurred last week when the bus company went on strike for three days over what it claimed was "inadequate security" for its staff and property, leaving commuters stranded at bus stands in cold, wintry weather.
In April last year, commuters in the twin cities faced a similar problem when some wagon routes were suddenly cancelled by the regional transport authority, and wagon and van operators took their vehicles off the streets in response.
The wagon operators in Punjab generally have been opposing the provincial government's franchise deal with ten big transport companies operating in several cities, including the one based in Rawalpindi.
Faced with the possibility of being pushed out of business by the big transport operators, the smaller wagon operators have gone to court to argue that the franchise system is unconstitutional because it is inconsistent with the fundamental rights and freedom of trade and business.
Their efforts culminated in a Supreme Court ruling last October which appeared to have gone in favour of the wagon owners. The ruling had ordered the provincial government to undertake corrective legal and administrative measures, and gave the franchise transport companies four more months to comply.
This period is due to expire by the end of February. If the relevant authorities do not untangle and resolve this long-standing controversy by then, the transport system in major cities of the province, including Rawalpindi and Islamabad, could grind to a halt.
It will be the commuters who will bear the brunt of what appears to be the inability of the relevant authorities to undertake appropriate and timely measures to ensure smooth-running of the public transport system.