The Pakistan Stock Exchange (PSX) witnessed a significant rise as the benchmark KSE-100 Index surged by 1,697.54 points, or 1.46%, reaching an intraday high of 117,750.22 points.
Explaining the market’s performance, Ismail Iqbal Securities CEO Ahfaz Mustafa attributed the rally to a recovery in energy stocks and a technical correction following the previous day’s steep 2,500-point decline. Mustafa shared these insights with Geo.tv, noting the rebound was driven by improved investor sentiment.
Optimism also stemmed from Prime Minister Shehbaz Sharif’s visit to Karachi, where he is expected to make a notable appearance at the PSX. During the visit, the premier is set to award the exchange the title of the world’s second-best-performing stock exchange for 2024.
Another boost came from the prime minister’s announcement in a recent cabinet meeting regarding the rollover of a $2 billion loan deposit from the United Arab Emirates. This decision has provided much-needed fiscal relief to the government, adding to market confidence.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, highlighted the market’s recovery following declines over the past two sessions. Speaking to Geo.tv, he emphasized that the prime minister’s visit further buoyed market sentiment.
The government’s plans to streamline operations by rightsizing 42 ministries and their 400 attached departments by June 2025 also contributed to investor confidence. Finance Minister Muhammad Aurangzeb revealed that 60% of vacant regular positions, amounting to 150,000 posts, have already been abolished or declared redundant. This move is expected to curtail expenditures and enhance efficiency.
Meanwhile, the State Bank of Pakistan (SBP) reported a Rs1.452 trillion increase in the government’s total debt during the first five months of FY25, representing a 2.1% rise. By November 2024, the total debt had reached Rs70.366 trillion, primarily due to high government spending and external debt repayments.
Despite ending the previous session with a slight decline of 202.44 points, the KSE-100 Index’s strong rebound reflects a shift in market sentiment fueled by government initiatives and fiscal measures.
