Monday, March 21, 2005

Even Pakistan Has A Bubble

As you can see from his picture, Farrukh Saleem is a serious guy. And he is worried about the price of real estate in his country along with a stock bubble. "A couple of years ago, a 500-sq-yard residential plot in Islamabad was priced at an average of Rs4 million. It now fetches up to five times that amount. In March 2003, the KSE-100 Index stood at 2,400 points. It now stands at four times that."

Low ownership rates make the situation especially painful for the average Pakistani. "When the price of land goes up only landowners become rich (no more than two percent of our population actually owns shares or land). A nation only becomes rich when the "price of labor" (salaries) goes up, and that unfortunately isn't happening in Pakistan."


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