Despite real fears that India and Pakistan will go to war over the disputed region of Kashmir, markets in Pakistan remain perhaps surprisingly calm for the time being.

Essential items are available, prices are relatively stable and stocks are being replenished as trade finance, including letters of credit (L/Cs), remains available.

Wait and see

Consumers and traders are in a "wait and see position," says Anis Majeed, chairman of the Karachi Wholesale Grocers Group (KWGG). "Perhaps they feel that the situation has not aggravated at the moment," he adds.

Panic buying has not erupted and according to Majeed, Pakistan's importers are neither hoarding nor stocking essential items in the hopes of opportunistic profits if demand starts to outstrip supply. "The markets have ample stocks of almost every essential commodity for at least 20-25 days," he says.

L/Cs, no problem

Importers are still opening fresh L/Cs with no difficulty according Majeed, indicating that financial institutions probably share consumers' and traders' sentiments for the time being at least.

The KWGG chairman's view certainly seems to be shared across several constituencies. Senior vice chairman of the Pakistan Kiryana Merchants Association, Jaffer Kudia says the markets hold ample stocks of most items and agrees that there is "virtually no element of panic among customers, importers and wholesalers."

A retailer in the Landhi area is reported as saying the that fear of war had yet to make made any impact on people besides which, he adds, stocks are large enough to suffice in "any emergency situation."

This article represents the view of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.