http://www.atimes.com/atimes/South_Asia/MH09Df03.htmlKARACHI - The worsening security situation in Karachi, the financial hub of Pakistan, has fueled fears among investors already hurt by the fall in global stock markets.
The benchmark Karachi Stock Exchange (KSE) 100-share index fell to a four-month low last week, losing a record 815.37 points, or 6.7% of its value, to close at 11,375.09, amid panic selling attributed to concerns over growing political, ethnic and sectarian violence in the city that resulted in the deaths of at least 340 people last month.
The business community is expecting that political disturbances in the days ahead, especially in Karachi, could throw the entire country into chaos and plunge the indebted economy into recession. The sell-off in stocks was triggered by a strongly
worded statement by the Muthahida Quami Movement (MQM), the dominant political party in Karachi, blaming ministers in the provincial government for persecuting its supporters after it quit the ruling coalition government on June 27.
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