The Stock MarketThe last few years have been exceptional in many ways for Pakistan's emerging stock markets. The Karachi Stock Exchange Index (KSE) recorded an all-time high above the market's 2661, only to fall deeply recently, representing about 40% erosion of the market's capital value. There have been significant inflows of foreign institutional capital. The public listing of around twenty new brokerage firms with foreign connections, the privatization of telecommunications, the creation of the basis for a corporate bond market and large investment commitments in the private energy sector are some important features of the list.