Pakistan stock exchange hits all time high, KSE-100 Index soars 773 Points

ISLAMABAD: Pakistan’s stock market continued its upward trajectory on Wednesday, with the KSE-100 Shares Index soaring to an intraday high of 86,437 points, a gain of 773 points.

This surge was fueled by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb’s optimistic forecast of declining inflation and policy rates.

The minister’s announcement that structural economic reforms are underway, combined with news of Saudi Arabia’s planned $2 billion investment in Pakistan, has injected optimism into the economy.

The finance minister’s prediction was backed by data, as Consumer Price Index (CPI)-based inflation dropped to 6.9% year-on-year in September 2024, its lowest level since January 2021.

This decline was driven by a high base effect, easing commodity and energy markets, and a stable currency. The State Bank of Pakistan’s (SBP) Monetary Policy Committee also slashed the key policy rate by 200 basis points to 17.5% last month, citing a steep fall in both headline and core inflation.

Investors responded enthusiastically, flocking to index-heavy stocks such as automobile manufacturers, commercial banks, fertilizer companies, oil and gas exploration firms, and oil marketing companies.

Blue-chip stocks like Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), National Bank of Pakistan (NBP), and Habib Bank Limited (HBL) remained in the limelight.

The market’s positive momentum is expected to continue, driven by improved economic management, fiscal tightening, and increased agricultural income taxes.

With GDP growth projected to recover to 2.8% in FY25, Pakistan’s economy is poised for a robust rebound.