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. 


Thousands protest Pakistan Supreme Court minorities ruling

Updated 7 sec ago
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Thousands protest Pakistan Supreme Court minorities ruling

  • CJP Faez Isa ordered the release of a man from Ahmadi community, considered heretical by Muslim scholars
  • Around 3,000 people gathered at protest rallies across the northwestern city of Peshawar after Friday prayers

PESHAWAR: Thousands of Pakistanis protested against the Supreme Court’s top judge on Friday, after he issued a ruling related to blasphemy that sparked online backlash and thinly veiled death threats.
A campaign targeting Supreme Court Chief Justice Qazi Faez Isa began after he ordered the release of a man from the Ahmadi community, considered heretical by hard-line Muslim scholars.
The man had been accused of disseminating a forbidden Ahmadi text, which firebrand clerics consider tantamount to blasphemy — an incendiary issue in Muslim-majority Pakistan, where even unproven allegations of offending Islam have sparked violence.
Around 3,000 people gathered at rallies across the northwestern city of Peshawar after Friday prayers.
Crowds blocked roads and chanted “Death to Qadianis” — a slur referring to Ahmadis — as well as “Long live Islam.”
The Supreme Court issued a statement on Thursday evening defending his ruling, denying that it went against the Islamic constitution of Pakistan.
“This impression is absolutely wrong,” it said. “The organized campaign against judiciary and judges is unfortunate.”
A spokesman for Pakistan’s Ahmadi community, Amir Mahmood, told AFP that “one-sided negative propaganda is being spread against this judgment” which protected a man from “being persecuted for his religious belief.”
Isa’s ruling first went unnoticed two weeks ago, before it was highlighted by social media accounts linked to the Tehreek-e-Labbaik Pakistan party behind violent anti-blasphemy protests.
Posts calling for him to resign have been shared thousands of times on social media.
The Pakistani chapter of the Taliban militant group — known as Tehreek-e-Taliban Pakistan (TTP) — called Isa “an enemy of Islam” and “a damned man.”
The Human Rights Commission of Pakistan said Isa’s ruling “protects the constitutional right of all religious minorities to freedom of religion or belief.”
“Those political leaders and sections of the media that are responsible for this campaign must be restrained,” the organization said on social media platform X.
Ahmadis have been discriminated against and persecuted for decades in Pakistan.
The second amendment of Pakistan’s constitution, made in 1974, declares Ahmadis non-Muslims.
The law also prohibits them from professing to be Muslims or spreading their faith, and allows the death penalty for those found guilty of insulting Islam.
In his judgment, Isa ruled that according to the constitution, “every citizen shall have the right to profess, practice and propagate his religion.”
“Freedom of faith is one of the fundamental tenets of Islam. But sadly, in matters of religion, tempers flare up and the Qur’anic mandate is forsaken,” he added.
He also said the book allegedly disseminated by the accused had not been outlawed at the time of the alleged crime in 2019.
Cleric Fazlur Rehman, the influential leader of the conservative religious party Jamiat Ulema-e-Islam, said Isa’s reasoning was “false and based on bad intentions.”
In 2011, the governor of eastern Punjab province was killed by his bodyguard after calling for reforms to the stringent blasphemy laws that Ahmadis frequently fall foul of.


Pakistan greenlights construction of 80-kilometer segment of Iran-Pakistan gas pipeline

Updated 23 min 8 sec ago
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Pakistan greenlights construction of 80-kilometer segment of Iran-Pakistan gas pipeline

  • The pipeline will be constructed from Pakistan’s border with Iran to its port city of Gwadar in the first phase
  • The project is likely to boost the country’s energy security, strengthen local industry with enhanced gas supply

KARACHI: Pakistan decided to build an 80-kilometer segment of the Iran-Pakistan (IP) gas pipeline on Friday after the Cabinet Committee on Energy approved the recommendations of a ministerial oversight committee evaluating various dimensions of the project after it was constituted by Caretaker Prime Minister Anwaar-ul-Haq Kakar last September.
Originally intended to supply gas from Iran to both Pakistan and neighboring India, the project was referred to as the IPI pipeline. However, India later withdrew from the project over concerns related to pricing and security, leading to the current designation as the IP gas pipeline.
The project remained stalled for a significantly long period since it could potentially create problems for Pakistan due to the international sanctions targeting Iran.
The United States, in particular, expressed opposition to the project, and there had been concerns that Pakistan could face economic sanctions if it proceeded with it.
“The [Cabinet] Committee [on Energy] recommended to start work on the 80 km segment of the pipeline inside Pakistan i.e. from Pakistan border up till Gwadar in the first phase,” said an official statement circulated by the Petroleum Division of Energy Ministry. “The Project will be executed by Inter State Gas Systems (Pvt) Ltd. and will be funded through Gas Infrastructure Development Cess.”
“All the concerned divisions gave a positive nod to move ahead with the project to ensure gas supplies to the people of Pakistan, thereby addressing the increasing energy needs of the country,” the statement added.
The project is expected to boost the country’s energy security and strengthen the local industry that can be assured sustainable and enhanced gas supplies.
The construction of the IP pipeline is also expected to catalyze the economic activity in Pakistan’s southwestern Balochistan province and which can positively impact the national economy.


Pakistan calls for Israeli occupation end, settlement reversal at International Court of Justice

Updated 23 February 2024
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Pakistan calls for Israeli occupation end, settlement reversal at International Court of Justice

  • The country’s interim law minister tells the court Israel is seeking annexation of Palestinian lands through military action
  • He recalls how France withdrew a million settlers from Alegria in 1962 who were more numerous and better established

ISLAMABAD: Pakistan called for an end to Israel’s occupation of Palestinian territories on Friday at the advisory proceedings of the International Court of Justice (ICJ) in which several other states have also participated in recent days.
The country’s legal position over the issue was presented by its interim law minister, Ahmed Irfan Aslam, who said the ICJ proceedings inspired hope since it provided the world the opportunity to develop jurisprudence and to advance essential principles of international law that preserved and upheld basic human dignity.
The Pakistani minister noted it had been the United Nations stated position not to condone legal changes to a territory as a result of military action. He reminded the court the UN had also asked Israel to withdraw its forces from from all the territories it had invaded in the 1967 Arab-Israeli Six Day War.
However, he maintained Israel’s policy was not just to occupy but annex the Palestinian lands.
“Israel’s occupation is no longer, if it ever was, the military occupation. It is annexation,” the minister said.
“This may have been the intention all along,” he continued. “[Israel’s first] Prime Minister [David] Ben Gurion affirmed in 1950 that ‘the Israeli empire must comprise all the territories between the Nile and the Euphrates.’ And this was to be achieved as much by invasion as by diplomacy.”
Aslam said Israel’s current Prime Minister Benjamin Netanyahu had also declared his government would its sovereignty over all the communities formed by moving Jewish settlers to Palestinian lands.
He maintained Israel had created “irreversible facts on the ground” by following its settlement policy to make it as difficult as possible to end its prolonged occupation of the West Bank and East Jerusalem.
However, he pointed out the world had dealt with such problems in the past in other contexts while specifically mentioning the French government’s withdrawal of a million settlers from Algeria in 1962.
“France’s settlements in Algeria were not only more numerous they were also far older and better established than Israel’s West Bank colonies,” he continued.
The Pakistani law minister sought the reversal of the policy while saying: “Israel’s occupation is unlawful and unlawfulness must have consequences.”
The ICJ proceedings have come at a point when Israel has been accused of carrying out the genocide of Palestinian people in Gaza.
It besieged the territory and launched airstrikes after a surprise attack was initiated by Hamas on Oct. 7 in response to the deteriorating condition of Palestinian people living under Israeli occupation.
The Palestinian death toll in the war has almost 30,000, with most victims of the conflict being women and children.


Leading VPN brand raises censorship concerns as Pakistan faces fifth Internet restriction in 2024

Updated 23 February 2024
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Leading VPN brand raises censorship concerns as Pakistan faces fifth Internet restriction in 2024

  • Surfshark says Pakistan willing to take any measure ‘to cut citizens off from each other and the rest of the world’
  • It mentions a spike in censorship, saying Pakistan witnessed four Internet restrictions in 2023 and three in 2022

ISLAMABAD: Pakistan’s recent restriction on social media platform X marks the country’s 5th Internet restriction in 2024 alone, said a leading virtual network (VPN) brand on Friday, raising concerns about growing Internet censorship in the country.
The social networking website has largely remained inaccessible to users in Pakistan for nearly a week since a senior bureaucrat last Saturday accused the country’s chief justice and top election commission official of rigging the controversial February 8 election.
The blockage has raised widespread concerns about democratic expression and media freedom, with the United States and several international organizations urging the government to provide unhindered Internet access to people.
Surfshark, a leading VPN brand, said Pakistan witnessed three restrictions in February that were “directly related to the election, while the remaining two happened in January during virtual events organized by the opposition [Pakistan Tehreek-e-Insaf party].”
“These new cases mark a worrying spike in Internet censorship in Pakistan,” it said in a statement. “2024 has only started but has already exceeded both 2023 and 2022 in new restriction count — there were 4 Internet restrictions in 2023 and 3 in 2022.”
It added Surfshark had witnessed an increase in VPN usage in Pakistan since February 18.
“Daily new user acquisition rates have grown three to four times compared to the previous month, indicating a growing reliance on these services for Internet access and privacy,” it added.
The company noted that Pakistan had imposed restrictions on VPNs which could lead to difficulties when connecting to the circumvention tools.
“Pakistan’s Internet censorship efforts have been alarmingly increasing, and 2024 may be a record year for the country regarding Internet restrictions,” Lina Survila, Surfshark spokeswoman, said. “With reports of VPN restrictions coming to light as well, it seems that the country is prepared to take any means necessary to cut its citizens off from each other and the rest of the world.”
Earlier, NetBlocks, an Internet monitor based in the United Kingdom, said that restriction on platform X had entered the sixth day, making Pakistan join “a handful of countries that ban access to international social media platforms.”


Ex-PM Khan’s party says no intention to compromise Pakistan’s economic interests in letter to IMF

Updated 23 February 2024
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Ex-PM Khan’s party says no intention to compromise Pakistan’s economic interests in letter to IMF

  • Khan’s legal team said he wanted to write a letter to the international lender, asking it to seek election audit
  • Khan’s party says it cannot damage the country’s economy, recalls developing welfare plans for its people

ISLAMABAD: A top Pakistan Tehreek-e-Insaf (PTI) party leader on Friday denied speculations that former prime minister Imran Khan wanted to compromise the country’s economic interests to make political gains in a letter to the International Monetary Fund (IMF), saying his party would never work against Pakistan.
The statement came a day after an IMF spokesperson told the media that the international lender did not want to comment on political developments in Pakistan in the wake of the general elections earlier this month which Khan’s party said were heavily rigged.
Prior to that, Khan’s legal team said he would send a letter to the IMF, which helped stabilize Pakistan’s economy when it was nearing default, requesting its officials to seek an independent audit of the February 8 national polls.
Pakistan is already under a short-term IMF loan program that is due to expire next month. The newly elected government is expected to negotiate yet another bailout package with the international lending agency in the coming months.
“We will not do anything that poses a threat to the state, causes harm to the state or damages the country’s economy,” Barrister Gohar Khan, PTI’s top leader in Khan’s absence, told a group of journalists in Rawalpindi. “The letter will be shared with you. You can read it.”
“Pakistan Tehreek-e-Insaf has developed projects for the welfare of the people,” he continued. “It brought investment to Pakistan [during its tenure].”
Former PM Khan has faced legal challenges since he was ousted from power in a no-confidence vote in April 2022. He has been in prison after being convicted on corruption and other charges since August last year.
Another high-profile PTI leader, Barrister Ali Zafar, also tried to defend Khan’s decision to write to the IMF, saying Pakistan always came first and foremost for his party.
“We believe that Pakistan should continue to engage with IMF in order to ensure financial discipline, good governance and economic stability which is critical for the prosperity of the people of Pakistan,” he said in a statement.
“While we will continue to support all steps in this direction taken for the benefit of the country and in national interest, PTI will continue its struggle for democracy and raise its voice at all forums and expect the international community’s support,” he added.
According to media reports, Pakistan plans to get a new IMF loan of at least $6 billion, with the talks likely to begin in March or April.