Abstract
This paper applies multi-index model to Pakistan cement industry firms to find out the relationship of Pakistan cement industry firms to selected market and industry variables. The seven firms selected for this analysis were on the basis of data availability, profitability and performance on the KSE 100 index. The data for the stock prices for the selected cement firms and market and industrial variables were obtained for the period of July 1998 to July 2004. This paper concludes that the return on the KSE 100 index is the only independent variable significant at 0.05 level, while the industry variables are insignificantly related to the stock returns of cement industry but they do increase the explanatory power of the model.
Highlights
1.1 An Overview of Industrialization in PakistanPakistan, the only nuclear state in the Muslim World is basically an agricultural country
This rapid growth of 50s and 60s could not be maintained in the later decades mainly because of unfriendly government policies, uncontrolled law & order situation etc
In 1989, the efforts of Benazir Bhutto’s government to establish a Board of Investment for laying down the policy guidelines of affecting industry, and in 1990, a series of policy reforms to stimulate investment in manufacturing by the government of Nawaz Sharif and the IMF/World Bank’s Structural Adjustment Program (SAP) for the enhancement of growth by encouraging the private sector including the opening of Public investment areas like power generation, commercial and development banking and air & sea transport large scale manufacturing sector managed an impressive growth of 7.4 % in 1991/92 [2]
Summary
The only nuclear state in the Muslim World is basically an agricultural country. It is widely accepted that no country has developed economically solely on the basis of agriculture. Pakistan is one of the few developing countries which have successfully used the vehicle of industrialization and made the spectacular progress especially in large scale manufacturing. This rapid growth of 50s and 60s could not be maintained in the later decades mainly because of unfriendly government policies, uncontrolled law & order situation etc. This situation is not similar in all the provinces.
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