BIS Review 5/2007  1  interest rate scenario. Moderation of long term interest rates in many ways is central to the pricing of assets, both real and financial. The world wide movement in interest rates, and also in Pakistan, will help achieve a more realistic realignment of prices.
This in turn facilitates global financial stability which is critical for emerging markets, including Pakistan, to benefit effectively from capital flows. These trends that I have talked about offer Pakistan tremendous opportunities, provided that Pakistan pursues and sustains market confidence.