1. COMSATS Institute of Information Technology Lahore.
Ata ul Hassnain
Section : A
Course : Financial Institutions
Teacher: Miss. Sadia Umar

2. Stock Exchange:
The Karachi Stock Exchange (KSE), is a stock exchange currently located at the Stock
Exchange Building (SEB) on Stock Exchange Road, in the heart of Karachi's Business
District, I. I. Chundrigar Road, Karachi, Sindh Province of Pakistan. It is Pakistan's
largest and one of the oldest stock exchange in South Asia by market capitalization,
with many Pakistani consortium as well as overseas enterprises listings. Founded on
September 18, 1947, Karachi Stock Exchange (KSE) is the biggest and most liquid
exchange in Pakistan. It was declared the “Best Performing Stock Market of the World
for the year 2002”. A total of 654 companies were listed on December 8, 2009 with a
market capitalization of Rs. 8.561 trillion (US$ 120.5 billion) having listed capital of Rs.
2805.873 billion. The KSE-100 Index closed at 11,967 on May 16, 2011. Total market
capitalization of the KSE reached Rs 2.95 trillion on July 30, 2011. As on May 28, 2013,
total market capitalization reached Rs. 5.22 trillion..
Reasons for the Crash of Stock Market in Pakistan:
Here we all know about the current situation of stock market in pakistan, it is currently
suffering since many decades. stock markets in country have experienced crises in
2000, 2002, 2005, 2006 and then in 2008 but only the last one has not been
investigated by the regulator, possibly because there was not much of political pressure,
as it followed international financial markets crash.
The investors were seen selling in panic their overbought shares, while the buyers
appeared reluctant and preferred to remain on the sideline that soon sent the market
sagging.The benchmark KSE-100 index on one occasion during the trading was seen
down by 403 points to peg at 21757 marks.

3. Core Reasons:
 Society is effectively under a siege from frequent terrorist attacks
 Society is effectively under a siege from frequent bombing on general
public
 Large civilian causalities
 Involvement of Pakistan in the on going Afghan war
 A break down of law and order and diminishing writ of the government
 Ineffective governance rampant with corruption
 A severe energy crisis compounded by those involved
 Day time Robery in banks and other financial institutions
Other Several Reasons:
 During much of decades of 1990s, stock market maintained fairly depressed
most of the time. The index reached its lowest level in early 1999 around 920
after neuclear exploision by India and Pakistan, and this was below the base
year of 1991. The market took off in early 1999 and by end of 1999 KSE-100
index rose to nearly 1400 plus level which lasted well into next year. Thereafter
the market was down again.
 These trends were further compounded by 9/11 events, resulting in market slide
and pushing KSE-100index to around 1100 by end-september 2001, the lowest
in past decade.

4.  By April 2008 , KSE-100 index moved to 15500 level. At that point the boom had
reached its peak , and was clearly ripe for for a major downward slide, though
there was no warming from any quarter the brokers , regulators or analyst, that
market is overdue for a significant fall in stock prices. Thereafter the crisis set in
and the market began to slide in late April of 2008, it was all over. The market
has nosedived to levels that were incomprehensible to many. Just a few months
back, they were riding high , by mid-year they were holding an empty bag of
valueless stocks.
 The spector of a certain downfall after romoval of floor loomed large, the rescue
package could not pursuade investors to hold the line regardless of put option if it
were to materialize. The government kept holding the line untill the very end,
reassuring the investors that such a drastic step will not be taken, but was forced
to act because of massive losses of foreign exchange reserves owing to open
capital account and the imminent outflow of foreign private portfolio of nearly half
a billion dollars.
Conclusion:
So that was the above mentioned reasons that why stock market of Pakistan suffers
allot in now a days and also in the past as well. By studying all thewse above reasons
we can easily evaluate where the major blunder had happened and we will be able to
overcome this issue of crashness of stock market in any country. We has been
discussed some of the core basic reasons and we have also discussed some of other
several reasons that how and why pakistan stock market crash.