“The Pakistan stock market surged past 49,000 points today, a six-year high. The benchmark Karachi Stock Exchange (KSE) 100 Index jumped over 1%, adding more than 600 points before mid-day.
The Pakistani rupee also made a strong recovery against the US dollar, gaining Rs1.55 to reach Rs287.83 before mid-day.
Financial experts credit the stock market rise to several factors. These include the improving balance of payment (BOP) outlook due to the IMF’s recent $3 billion loan program. Also, attractive stock valuations and company owners buying back shares have boosted investor confidence.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, explained, “The PSX increase is driven by the improving BOP outlook after the IMF’s loan program, attractive stock valuations, and company buy-backs.”
Muhammad Sohail, CEO of Topline Securities, praised the achievement, stating, “Pakistan’s benchmark stock market index has crossed 49,000 points.” He also noted that the market had gained an impressive 20% in just five weeks after receiving the IMF’s loan in June 2023.
The IMF’s loan program played a crucial role in stimulating economic growth in Pakistan, addressing financial challenges, and stabilizing the economy.
The State Bank of Pakistan (SBP) said on Monday projected 2-3% economic improvement in the current fiscal year 2023-24. They also expected Pakistan’s foreign exchange reserves to exceed $10 billion by June 2024, with the current account deficit likely to remain under 0.5-1.5% of GDP in FY24.
The surge in the Pakistan stock market and the rupee’s recovery reflect positive economic growth prospects. Pakistan is making progress towards stability and prosperity.”