KARACHI, Dec 21: Although the Karachi Stock Exchange may not have any direct relevance to the post-war reconstruction work in various sectors in Afghanistan but it could give the needed boost to the physical activity as some of the listed shares could be the direct beneficiary.
The cement, steel re-rolling construction, vegetable ghee, textiles and some other listed companies could be the direct beneficiaries of the post-war Afghan development scenario if they could market their products at competitive rates, market analysts say, adding which in turn “could boost their share values from the prevailing lower levels.”
Already some of the sectors are the centre of activity owing to anticipatory buying at the lower levels and rising steadily from their career-lows and may attain their face values after the contract work sets in motion.
Unconfirmed reports say some of the leading local construction companies have already signed agreements with international enterprises for subcontracts and are lining up their machineries to put them on the mainstream. Gammon Pakistan share may be one of the beneficiary and so could be of the Hydery Construction, the former being quoted on the defaulters counter.
According to reports the size of the reconstruction package is estimated between $10 to $12 billion depending on the contribution of the US-led coalition partners, spreading over the next couple of years. Initial capital development outlay could be between $1 to $2 billion for the first two to three years.
“Much will depend on the bargaining capacity of the government and the local entrepreneur to ensure a fair share of the total capital outlay for the local industry,” financial analysts said.
Being a front-line country and having suffered a loss of $2 billion during the last two month both on trade and economic accounts, Pakistan deserve a lion’s share in the total package as compensation to cover the hug losses.
Having the advantage of overland route, and an economical distance, Pakistan industry high-ups and commercial leaders could out-manoeuvre price-wise their immediate competitors in more than one way, they claim.