The Pakistan Stock Exchange (PSX) has achieved an unprecedented milestone, crossing the 81,500-point mark for the first time in its history.
The bullish trend has seen a remarkable surge, propelling the KSE-100 Index up by 600 points to a new high of 81,700 points.
Following a two-day break, the stock market opened with a strong bullish trend. This upward momentum initially pushed the market past the 81,500-point level, setting a new all-time high for the PSX. The KSE-100 Index rose by 380 points at the start of trading, reaching 81,525 points.
Market analysts attribute this bullish trend to a combination of positive investor sentiment and favorable economic indicators. The surge reflects growing confidence in the country’s economic prospects and the performance of key sectors.
These positive trends come despite the Asian Development Bank (ADB) forecasting high inflation in Pakistan for this year in its latest Asian Development Outlook report. While the inflation rate is expected to remain high, the report indicates a potential decrease in Pakistan’s debt burden.
The ADB report highlights that Pakistan’s economic growth rate was 2.4% in the last fiscal year, with agriculture playing a significant role. Despite persistent inflation, the rate has decreased from 38% to 11.8%, leading to a reduction in the policy rate.
However, Fitch Business Monitor International has raised concerns that Pakistan’s current political turmoil could disrupt the country’s economic stability.
In its latest Pakistan Country Risk Report, Fitch noted the critical state of Pakistan’s economic recovery, emphasizing that urban protests have hampered economic activities. The report also points to a precarious political climate, with the founder of Pakistan Tehreek-e-Insaaf (PTI) likely to remain imprisoned despite several successful legal appeals. This scenario suggests that a coalition government will hold power for the next 18 months, with no immediate plans for new elections.
Additionally, the International Monetary Fund (IMF) stated on Tuesday that Pakistan’s economic growth rate for the ongoing fiscal year is projected to reach 3.5%. The IMF’s updated global economic outlook report notes that the government has set an economic growth target of 3.6% in the new budget.
