Emerging markets require special attention. Standard models don’t apply, conventional wisdom doesn’t work and traditional thinking can quickly land you in uncharted and troubled territory. Pakistan as an economy is not that different from other emerging markets.
Like others we have our own personal challenges and demons. However given our special needs and situation we receive a fair bit of coverage internationally which suffers from the absence of a standard on tracking, managing, reporting and benchmarking financial risk in Pakistani market. Given that we are the 25th largest economy in the world on a purchasing power parity basis and the amount of coverage we receive, the absence of such a standard is surprising.
With Pakistan Risk Review – Market risk edition we hope to establish an objective benchmark that can help investors in Pakistani markets better understand the risk and reward profile of Pakistani securities. At the same time we aim to provide local and international analysts a consistent periodic benchmark using terms and tools that are standard in the developed world but rare for an emerging market.
With the availability of this document we, together with our readers and subscribers, take a significant step towards democratizing risk from a specialized but often miss-understood function to real numbers that can be practically applied today.
First issue, out in print on the 18th of April 2009.