NEW YORK, March 28: Is the Pakistani stock market harbinger of early spring? Over the last three months — January to March 2002 — the Pakistan stock market (Karachi Stock Exchange) has surprised many assets and investment managers in New York as it emerged as number one performing stock market in the world as ranked on Bloomberg analytic system.

The KSE returned 43 per cent over the last three months, followed by Jakarta at 32 per cent in dollar terms.

In the last 12 months, Pakistan’s stock market, which returned 40 per cent, is ranked at number three behind the Russian stock market which retuned 101 and the South Korean at 70 per cent, a market investment manager here told Dawn.

He said what it means is that the stock market has gone up and the rupee has appreciated against the dollar, the investment manager said.

“This is also a predictor and indicator of better economic times on the horizon. It’s like harbinger of early spring” he observed.

He asserted that “what is surprising about the survey and the indicators is the fact that the political and security atmosphere in the region is still dismal yet the Pakistan stock market continues to perform well.”

Some of the main reasons given for the Pakistan stock market to perform so well despite the odds is the fact that in February the credit ratings firm of Moody’s and Standard and Poor revised the country’s ratings favourably and Pakistan’s foreign exchange reserves continue to rise above average.

In February during President Gen Musharraf’s visit, US President George Bush and the US congress agreed to give Pakistan a one billion dollar debt relief package in addition to the 600 million dollar grant announced earlier as a reward for Pakistan joining in the US war on terrorism.

Besides Japan, Pakistan’s second biggest donor and creditor agreed at the Paris Club to reschedule Pakistan debt payments giving it a 15-year reprieve. It also agreed to provide Pakistan with 300 million dollar in grant in two instalments.