KARACHI - The current worst-ever financial crisis in the United States could force the foreign investors in Pakistan to pull out their stake from the capital market. The foreign investors still hold 2.30 billion dollars worth stake in the capital market (free float) which they can off-load once the Karachi Stock Exchange lifts cap on prices, expected next month, analysts told The Nation. "It is premature to evaluate the immediate repercussions of Wall Street and European Stocks credit/equities crunch on Pakistan's capital market which owing to price floor mechanism cannot fall however witnessing, more selling pressures in key stocks at the floor, fall in Asian markets will have its impact on our capital market where foreigners still hold shares worth US$2.3 billion or 24 percent of free float, one analyst said, adding that the imposition of price freeze is likely to lift in October, 2008 whereby more than expected offloading by foreign funds could be seen in case this global market turmoil does not come to an end." Analyst further said that the fear of further foreign selling after the global market collapse would create further panic amongst the investors by affecting their sentiments.   He was of the opinion that the creation of Equity Opportunity Fund (EOF) and announcement of buy backs by large cap firms have so failed to boost investors' confidence in Pakistani capital market which needs at least Rs 20-30 billion to stabilize the market. The buyers plan will take at last 2-3 months while there is hardly any progress on attaining Rs 20 billion opportunity fund. On account of economic slowdown and global markets plunge accompanied with credit crunch, domestic stock market will remain under pressure at least in the short-run.     In a bid to bolster investor confidence on the US and European stocks, World central banks have reportedly pumped billion of dollars. According to news reports, the US Federal Reserve offered 180 billion dollars and promising more. Central banks had spent more than 600 billion dollars this week to avert a global system failure. In addition, the Fed rescued US insurance titan AIG with 85 billion dollars, having allowed Lehman Brothers bank to fail. The Fed was joined by the European Central Bank with the British, Japanese, Swiss and Canadian banks in offering to swap currencies for dollars, taking the total to some 300 billion dollars on offer. The US Treasury also had announced plans on Thursday to raise 100 billion dollars in a new issuance of debt to help support the Fed's action. According to State Bank report, 2008 has been a difficult year for the global economy but more so for emerging and developing economies including Pakistan. After a relatively long period of macroeconomic stability and prosperity, global economy has faced multifarious challenges: (i) hit by the subprime mortgage crisis in U.S in 2007, the international financial markets have been in turmoil and whose impact is now felt across markets and continents; (ii) rising global commodity prices, with crude oil and food staples prices skyrocketing; and (iii) a gradual slide in the U.S dollar against major currencies. Combination of these events has now induced a degree of recessionary tendencies and inflationary pressures across developed and developing countries. In one sense, Pakistan is no exception. Like other countries, it faced confluence of global shocks. What distinguishes Pakistan, given its political and economic vulnerabilities relative to other developing and emerging countries, is that the impact of global shocks turned out to be severe and rapid.