The Economy blog

The troops from Pakistan started to secure the Buner Valley particularly the main town which is just a hundred kilometers away from the Islamabad.

Unfortunately, Pakistani troops can’t secure the country’s stocks as it fell sharply the same day that the troops took on the Talibans.

The benchmark of the Karachi Stock Exchange (100-share index) decreased by as much as 158.78 and ended up with 7,271.30 points only.

According to Ashraf Zakaria, the decline in the stocks is all because of the non-market dilemma happening at the northern part of the country. This event is making investors and almost everybody very insecure. The dealer from the Ali Hussain Rajabali and Co. also mentioned that insecurity can be considered as inviolable especially in the stocks market.

It is no longer just the London Bridge that has been falling down but the money market rate as well. Since the month of April started, there has been a great decline in the rates despite of the different signs that the financial institutions such as the banks are now trying to lend funds to each other (one of the signs of economic recovery according to the analysts).

For 44 consecutive days, the interbank rates have been dwindling. On the other hand, the rates for the US dollar have been dropping for more than 20 continuous days while the rates for Euro is already on its fifth day of rate diminution as well.

There are now hundreds of analysts claiming that they know all about the economy which is very unstable today. With all the appearances on TV and articles that you can read on the internet, you would see that they only say one thing – the economy is so depressed and the it is taking a big plunge right now because of the bad earnings that most firms are experiencing. Unfortunately, most investors, companies, and other firms are not coming close to their desired or expected earnings. Not until these firms can beat the earnings expectations, they will not have a sturdy foundation for their business.

As of the moment, companies think that their time of “rebirth” is about to come. Most of them are now beating the estimated earnings by as much as 60 percent. However, there are still some who can’t catch up to their desired revenues. But the good news is that they are becoming very efficient. They are now cost-cutting and looking for other resources that would not cost a lot and take so much from their company’s budget.

The CNBC actually have records of some of the company’s revenues. You can check it out at http://www.cnbc.com/id/18080780/site/14081545/.