Munich Personal RePEc Archive

Scope of Hedge Fund in Pakistan

Akber, Hira and Ali, Syed Babar (2005): Scope of Hedge Fund in Pakistan.

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Abstract

This study analyzes and explores the Scope of Hedge Fund in Pakistan. Due to time constraint the research is limited to certain core point. Main focus is to find out the reason why Hedge fund is not started in Pakistan till yet, what are the major problems hedge fund has to encounter. What style and strategies will be successful in Pakistan and what are the main challenges that the hedge fund has to face in Pakistan. Due to shortage of primary data availability in references of Pakistan, the study is design in an exploratory form to get the maximum insight over the topic with in limited time period. Data is gathered through questionnaire and interviews both are structured. The respondents of the study are the top head of Investment banks as the investment bank play a big role in bringing Hedge funds in Pakistan economy and financial market. One interview is conducted with Dr. Ishrat Husain to find out the view of regulatory bodies over the issue. Through this research it is found that there are very few investment strategies/option available for hedge fund which can limit the huge investment style menu to very few options. And if we start hedge fund on this stage it would not as successful idea as it globally. So, it’s better to wait for same until the financial market increases or expands derivative instruments, till the government changes its policies regarding short selling and leverage and till we achieve more depth in bond and equity market. There is the need to increase volatility in the market. All these change might take the time period from three to four years. And if we starts hedge fund after making all these improvement hedge fund can do more than better this for the economy.

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