Pakistani bourse surges past 62,000 points fueling expectation to surpass 81,000-mark by next year’s end 

A broker looks at an index board showing the latests share prices at the Pakistan Stock Exchange in Karachi on February 14, 2023. (AFP/File)
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Updated 04 December 2023
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Pakistani bourse surges past 62,000 points fueling expectation to surpass 81,000-mark by next year’s end 

  • Bull run at the stock market continues amid strong earnings growth, hopes of $700 million release from IMF and investment from Gulf nations 
  • KSE100 index has displayed a remarkable journey since July 2023 when Pakistan signed a short-term IMF bailout program, with gains of 42.3 percent 

KARACHI: Pakistan equities on Monday hit yet another record high by breaching the 62,000-point mark, stock brokers and analysts said, amid a bullish sentiment fueled by strong earnings, hopes of investment from Gulf countries and a successful review of a $3 billion International Monetary Fund (IMF) bailout facility. 

The benchmark KSE100 index gained 802 points to close at 62,493 points on hopes of release of a $700 million tranche from the IMF and recent positive developments during the visit of Prime Minister Anwaar-ul-Haq Kakar’s to the Middle East that rekindled hopes of multibillion dollar investment in the South Asian country. 

“Stocks closed at new all-time high amid speculations ahead of landmark free trade agreement with GCC (Gulf Cooperation Council), government measures over Pakistan Sovereign Wealth Fund and IMF board approval for release of $700 million tranche,” Ahsan Mehanti, a senior equity analyst, told Arab News. 

Rupee’s stability amid renewed foreign interest, a surge in exports by 7.66 percent and a decline in trade deficit by 31.7 percent in November played a catalyst role in the record close, according to Mehanti. 

The key stock index, KSE100, has displayed a remarkable journey since July 3 and gained 18,594 points, or 42.3 percent, when the South Asian country signed a short-term bailout facility with the IMF. 

Pakistani financial experts believe the ongoing robust earnings growth, enticing valuation, substantial domestic liquidity, and comparatively steady economic growth will propel the KSE100 index to above 80,000 points by the end of next year. 

“Redefining the allure of valuation, our December 2024 target for the KSE-100 Index is set at 81,259 points, portraying an upside of 32 percent from the index closing of 1-Dec-2023,” Arif Habib Limited, a Karachi-based brokerage firm, said in its report, titled “Pakistan Investment Strategy 2024,” on Monday. 

The major themes which would come into play during the next year include compelling valuations, substantial domestic liquidity and improving macros and monetary easing. 

“We anticipate robust growth across all sectors, projecting double-digit earnings growth for the majority. Our outlook for KSE100 indicates an expected 17.2 percent percent earnings growth in 2024,” the report read. 

It highlighted the recent announcement for the conduct of general elections on February 8 has also played a key role in boosting stocks. 

“We think that with the arrival of a freshly elected government, a much-needed era of political stability is set to start and this will be positive for the stock market,” the report read further. “We also view that persisting fears of a delay in elections are unfounded.” 

Pakistan is on the verge of completing its latest standby arrangement with the IMF and will immediately be required to enter a new bailout program. Timely elections and a freshly elected government taking charge is essential to continue the economic reforms that have been initiated under the current caretaker administration. 

Pakistani bourse’s performance was also fueled by the recent visit of PM Kakar to the United Arab Emirates (UAE) and Kuwait, which sparked hopes of huge investment inflows into the South Asian country. 

Pakistan and the UAE signed multi-billion-dollar memorandums of understandings (MoUs) last week across diverse sectors, under which the Gulf nation is likely to invest $20-25 billion in Pakistan. 

 In another development, Pakistan and Saudi Arabia reached a consensus on investment modalities with regard to a proposed free trade agreement (FTA) with the Gulf Cooperation Council (GCC), caretaker commerce minister, Ejaz Gohar, who was visiting Saudi Arabia, said in an X post on Saturday. 


Pakistan says net-metering promotes ‘unhealthy investments’ in solar power

Updated 58 min 31 sec ago
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Pakistan says net-metering promotes ‘unhealthy investments’ in solar power

  • Government says massive solar installation is affecting 30 million consumers, imposing Rs1.90 per unit burden on them
  • Experts say the government’s ‘regressive policies’ will make it difficult to cut fossil fuel and promote renewable energy

ISLAMABAD: The Pakistan government said on Saturday net-metering was promoting unhealthy investments in installation of solar power by affluent domestic and industrial consumers, hinting at cutting the buyback rates to discourage uptick in the sector.

The government approved the net-metering policy in 2017, allowing solar panel purchasers to sell power they produced to the national grid to spur the solar energy use and cut power shortages. Under the policy, the government is paying Rs21 per unit for the net-metered electricity which the government says is resulting in the subsidy of Rs1.90 per unit, burdening the government.

This development comes at a time when the price of solar panels has plummeted by more than 60 percent in Pakistan in recent weeks due to the bulk imports from China because of lower rates, making the country witness a surge in the solar power installation by domestic and industrial consumers to reduce their electricity bills.

“The present system of net-metering is promoting unhealthy investments in solar power,” the energy ministry said in a statement on Saturday. “Affluent consumers have been massively installing solar power due to which domestic, industrial consumers and the government have to bear the burden of Rs 1.90 per unit under the head of subsidy.”

The ministry warned the subsidy was affecting some 25 to 30 million “poor consumers,” and if the trend of the solar power continued, the bills of ordinary consumers would surge by at least Rs 3.35 per unit. However, it clarified no fixed tax was being imposed on the solar power.

The 2017 net-metering policy was aimed at promoting renewable energy in the system, which helped enhance the solarization in the country that now “needs to be balanced,” the ministry said.

Pakistan has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country. Utilizing just 0.071 percent of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s electricity demand, according to the World Bank.

Currently, only 5.4 percent of Pakistan’s installed power generation capacity of 39,772 megawatts comes from renewables like wind, solar and biomass, while fossil fuels still make up 63 percent of the fuel mix, followed by hydropower at 25 percent, according to the National Electric Power Regulatory Authority (NEPRA).

The South Asian nation of 241 million aims to shift to 60 percent renewable energy by 2030 with 50 percent reduction in projected emissions, but it stands far behind in meeting the goal despite a recent surge in the solar power.

Energy experts said the government’s “inconsistent” solar power policies would result in discouraging the sector and its failure in meeting the national and international commitments of cutting the greenhouse gas emissions.

“Public sector the world over is promoting renewable energy to cut fossil fuel while we are discouraging consumers with regressive policies,” Aamir Hussain, chairman of Pakistan Alternative Energy Association, told Arab News.

He said the association had suggested the government to issue licenses to consumers for their actual household or industry load instead of allowing them to install massive solar power with a promise to buyback the surplus.

“The government should come up with an inclusive policy to promote renewable energy instead of discouraging consumers by slapping taxes or cutting the rates,” he added.


Babar Azam, Fakhar Zaman lift Pakistan to 178-5 in fifth T20I against New Zealand

Updated 27 April 2024
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Babar Azam, Fakhar Zaman lift Pakistan to 178-5 in fifth T20I against New Zealand

  • Azam scored a 44-ball 69 while Zaman made a 33-ball 43 for Pakistan after they were sent in to bat by Black Caps
  • New Zealand won the third and fourth matches while Pakistan took the second after the first one was abandoned

LAHORE: Skipper Babar Azam notched a solid half century to guide Pakistan to 178-5 in the fifth and final Twenty20 international against New Zealand in Lahore on Saturday.
Azam scored a 44-ball 69 while Fakhar Zaman made a 33-ball 43 for Pakistan after they were sent in to bat at Qaddafi Stadium.
Azam saw his opening partner Saim Ayub fall in the second over for just one but that did not deter him as he added 73 for the second wicket with Usman Khan who made a brisk 24-ball 31.
Azam hit six boundaries and two sixes in his 34th T20I half-century before he was bowled by pacer Ben Sears in the 15th over.
Zaman hit four boundaries and a six before he was smartly caught by Mark Chapman on the boundary off Zak Foulkes as Pakistan managed 55 in the last five overs.
Shadab Khan hit a six and a four in his five-ball 15 not out.
New Zealand made three changes as they brought back Tim Seifert, Cole McConchie and Foulkes while pace spearhead Shaheen Shah Afridi returned for the home team.
New Zealand won the third and fourth matches while Pakistan took the second after the first in the series was abandoned.


New Zealand win toss, opt to bowl in 5th and final T20 against Pakistan

Updated 27 April 2024
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New Zealand win toss, opt to bowl in 5th and final T20 against Pakistan

  • Pakistan, looking to build-up for June’s T20 World Cup, are trailing 2-1 in the series
  • Pakistan have brought in their ace fast bowler Shaheen Shah Afridi in place of Zaman Khan

LAHORE: New Zealand captain Michael Bracewell won the toss and elected to field in the fifth and final Twenty20 against Pakistan on Saturday.
Pakistan, looking to build-up for June’s T20 World Cup, are trailing 2-1 in the series as they tested their bench strength against the understrength Black Caps.
Pakistan made just one change from the team that lost the fourth match by four runs, bringing in their ace fast bowler Shaheen Shah Afridi in place of Zaman Khan.
New Zealand, touring Pakistan without their nine frontline T20 players who are in the Indian Premier League, made three changes.
Tim Seifert recovered from sore back and returns in place of Tim Robinson, who scored a half-century in the last game but was ruled out with a groin injury.
Cole McConchie and Zak Foulkes also made it to the playing XI replacing Dean Foxcroft and Jacob Duffy. Foxcroft was ruled out with a back injury.
The first game was abandoned because of rain before Pakistan bowled out New Zealand for 90 runs in the second game to win by seven wickets.
New Zealand made a comeback, winning the third match by seven wickets before edging out the home team in the last game at Qaddafi Stadium on Thursday.


Pakistani pro-Palestine protester says banned from rights conference after disrupting German envoy's speech

Updated 7 min 16 sec ago
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Pakistani pro-Palestine protester says banned from rights conference after disrupting German envoy's speech

  • The envoy was criticized for ‘lecturing’ on civil liberties when Germany was punishing defenders of Palestinian rights
  • One of the organizers of Asma Jahangir Conference says no one should ‘insult people by shouting or getting harsh’

ISLAMABAD: A pro-Palestine protester in Pakistan, who interrupted German Ambassador Alfred Grannas during his speech on civil liberties in South Asia at a rights conference in the eastern city of Lahore on Saturday, said he was ‘manhandled’ by the organizers who later forces him out of the hall.
Ali Abdullah Khan, who studies economics and is part of the Progressive Students Collective, disrupted the German envoy’s speech at the popular Asma Jahangir Conference while accusing the European state of “brutally abusing” those who have been agitating for Palestinian rights.
Germany has clearly sided with Israel since the beginning of the war in Gaza after a surprise attack was launched by Hamas on Oct. 7 as a response to the deteriorating Palestinian condition living under Israeli occupation.
The conflict, which has led to the killing of over 34,000 Palestinians, has led to widespread criticism of the Israeli government, leading to protests in different parts of the world.
While countries like South Africa have accused the Jewish state of committing genocide in Gaza, German authorities have forcibly removed protest encampments and gone into people’s houses to arrest them for critical social media posts on charges of antisemitism.
“We were forced out of the place after we raised our voice during the German ambassador’s speech,” Khan said while speaking to Arab News. “The organizers manhandled us and banned our entry in the conference.”
He said it was “baffling” to see the German ambassador “lecturing” people on civil liberties in Pakistan after his country supplied arms and ammunition to Israeli military to kill Palestinian civilians and destroy hospitals and education institutions.
“Germany isn’t in a position to champion civil liberties and human rights when it is complicit in the killing of thousands of civilians in Palestine,” he continued. “We simply called out Germany’s hypocrisy by peacefully raising our voice in the conference that literally agitated the ambassador.”

German Ambassador to Pakistan Alfred Grannas gestures during a speech at the Asma Jahangir Conference in Lahore on April 27, 2024. (Photo courtesy: X/@voicepkdotnet)

Khan said he had peacefully expressed solidarity with the people of Palestine and would continue to do so until the western world remained “complicit in the brutal massacre of Palestinians.”
The Asma Jahangir Conference is named after a late Pakistani human rights lawyer and activist and brings together scholars, activists, legal experts and policymakers to discuss a wide range of issues affecting the lives of marginalized communities.
Responding to an Arab News query, Munizae Jahangir, one of the conference’s organizers and the daughter of Asma Jahangir, objected to the way Khan criticized the German envoy.
“Freedom of speech is everybody’s right, but there should be a decent way to ask questions or express your difference of opinion,” she said. “The purpose of the conference is to provide a platform to people to express their opinions, views and dissent, but one should not insult people by shouting or getting harsh.”
Jahangir, a prominent journalist and activist in her own right, said a special session on Gaza was held at the conference to highlight the issue that was attended by Shawan Jabarin, director of the Palestinian human rights organization Al Haq, and Francesca Albanese, the United Nations Special Rapporteur on the Occupied Palestinian Territories.
“We warmly welcome the difference of opinion at our platform but not the insult and disrespect to our honorable guests,” she added.
Earlier, Khan interrupted the German ambassador shortly after he began his speech.
“I am shocked by the audacity that you are here to talk about civil rights while your country is brutally abusing the people speaking for the rights of the Palestinians,” he shouted while standing at the back of hall.
Many people around him supported him by shouting “Free, Free Palestine” and “From the River to the Sea.”
The German envoy, who looked visibly perturbed by the development, responded by shouting back at him and pointing to the exit.
“If you, if you want to shout, go out,” he said. “There you can shout. Because shouting is not a discussion.”
Last year in November, a Pakistani classical dancer and human rights activist Sheema Kermani raised slogans for a ceasefire at a British Deputy High Commission event in Karachi and later complained of being “escorted out.”


Gunmen abduct judge in Pakistan’s northwest amid surge in militant violence

Updated 27 April 2024
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Gunmen abduct judge in Pakistan’s northwest amid surge in militant violence

  • Khyber Pakhtunkhwa chief minister says ‘emergency measures’ must be taken to bring back the judge
  • Police say a heavy contingent has gone to the area to gather evidence and identify the armed men

PESHAWAR: Unidentified gunmen abducted a district and sessions court judge in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province on Saturday as he was traveling from his hometown of Tank to the southern Dera Ismail Khan district, according to a police official.
The incident has alarmed the legal community and coincides with a resurgence of militant violence in KP and Balochistan provinces, following the Tehreek-e-Taliban Pakistan (TTP)’s termination of a fragile truce with the government in November 2022.
“Shakirullah Marwat, the district and sessions judge in South Waziristan, was kidnapped near Bagwal, a dusty town between Tank and Dera Ismail Khan,” said Muhammad Ibrahim, a police spokesman. “The kidnappers released Marwat’s driver but took the judge with them.”
Ibrahim added that a heavy police contingent was dispatched to the area immediately after the incident to collect evidence and search for the armed men.
Earlier this month, an attack in Dera Ismail Khan resulted in the death of six people, including five customs department officials, with another person wounded when gunmen targeted their vehicle.
Shah Fahad Ansari, a high court advocate and the divisional president for the People Lawyers’ Forum, condemned the abduction, saying that courts across the region should be locked down in protest to draw attention to the deteriorating law and order situation.
“The provincial government has completely failed to maintain security in the area,” Ansari added. “You can imagine the sense of insecurity among people at a time when the state cannot even protect its judges.”
Reacting to the development, KP Chief Minister Ali Amin Gandapur instructed the police to ensure the safe recovery of the judge.
“Emergency measures must be taken to recover the judge, and all available resources should be utilized for this purpose,” he said in a statement.
Gandapur maintained the people who were behind the incident would not be able to escape the law.
The recent weeks have also seen attacks on police officials in KP.
Earlier this month, a policeman was shot dead in North Waziristan. In related incidents, an official from the provincial counterterrorism department and a senior cleric affiliated with the Jamiat-e-Ulema-e-Islam religious party were fatally shot in target killings in the area.
While no group has claimed responsibility for these attacks, suspicion has fallen on the TTP, whose leadership is said to be based in neighboring Afghanistan.
The Afghan deputy interior minister, Mohammad Nabi Omari, urged Pakistan and the banned militant network to resume negotiations earlier this month, but Pakistani authorities rejected this idea, calling on the administration in Kabul to act against militants operating from its soil.