This paper examines the short- to medium-term trends and volatility in Karachi Stock Exchange (KSE) and further explores the nature of relationship between stock market activities and a set of macroeconomic variables in the 1990s. The analysis is based on daily and monthly data on general stock...

The paper undertakes a multivariate time series analysis and shows that repressed financial markets were not in themselves a justification for financial liberalization in Pakistan in the 1990s. The study tries to analyze the possible reasons for the failure of the financial reform process in...