The Pakistan Stock Exchange (PSX) has made history, with the benchmark KSE-100 Index surpassing the 100,000-point mark for the first time ever. This remarkable achievement underscores growing investor confidence and a significant turnaround in the country’s economic trajectory.
Government Policies Drive Investor Confidence
Prime Minister Shehbaz Sharif attributed the PSX’s historic milestone to the government’s robust economic policies and the tireless efforts of the country’s economic team. In a statement, the premier remarked:
“The stock exchange crossing 100,000 points reflects the business community’s and investors’ trust in government policies. Our economic team deserves praise for driving investment and achieving this milestone.”
Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Saquib Fayyaz Magoon, also lauded the government’s achievement, emphasizing the importance of political stability and sound economic management. He highlighted that the milestone is a testament to the government’s ability to revive the economy amidst challenging circumstances.
Factors Behind the KSE-100 Index Surge
The KSE-100’s dramatic rise of 150%, from 40,000 to 100,000 points in just 17 months, is attributed to several key factors:
- Exchange Rate Stability: The Pakistani rupee’s relative stability has bolstered investor confidence.
- IMF Agreements: The successful transition from a $3-billion Stand-By Arrangement to a longer facility with the International Monetary Fund (IMF) has reassured global investors.
- Improved Earnings: Major sectors, including banking, energy, and telecommunications, have reported improved earnings, further driving market optimism.
- Monetary Easing: A reduction in interest rates, now at 15%, has increased liquidity in the market, encouraging investment.
Economic Achievements and Outlook
Prime Minister Shehbaz Sharif also highlighted other positive economic indicators, including:
- A decline in inflation.
- Record-high remittances from overseas Pakistanis.
He pledged to continue efforts to ensure economic stability and progress, vowing to thwart any attempts by adversaries to destabilize the country’s development. Magoon echoed this sentiment, expressing optimism that Pakistan’s economic recovery will gain further momentum.
“This achievement marks a new beginning and a rise of hope after previous disappointments,” said Magoon, calling on political parties to prioritize national progress over divisive propaganda.
A Promising Future for Pakistan’s Economy
As the PSX’s historic milestone marks a resurgence of investor confidence, both government officials and economic experts anticipate continued progress. With sound economic management and strategic investments, Pakistan is poised to build on this momentum, driving further economic growth and stability.
