Global struggle to stabilize financial markets continues but has already changed the emerging financial landscape and has intensified exciting debates regarding the financial regulatory and supervisory architecture. The global scene has shaken confidence across economies and markets. Amidst all this, there are several reviews on how Asia fared and withstood the global financial shocks.
Generally, Asia has been impacted but the impact has been steeper in countries with weaker macroeconomic fundamentals and low foreign exchange reserves and those with high exposure to CDOs and related products. As events have unfolded, myths regarding decoupling of Asia have evaporated. Abstracting from the larger debate of emerging complications for Asia, I propose to now concentrate on Pakistan.