Pakistan’s stock market records highest closing as inflation eases, investment in securities increases

Stockbrokers monitor the latest share prices at the Pakistan Stock Exchange (PSE) in Karachi on July 3, 2023. (AFP/File)
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Updated 03 April 2024
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Pakistan’s stock market records highest closing as inflation eases, investment in securities increases

  • Pakistani investors expect a cut in interest rate in upcoming monetary policy as inflation declines
  • Analysts term foreign inflows in government treasury bills as positive development for stock market

KARACHI: Pakistan’s stock market recorded its highest ever closing at 67,756 points when trading ended on Wednesday, with financial analysts attributing the surge to expectations of a cut in the central bank’s policy rate and an increase in foreign investment in government securities. 

The KSE-100 index on Mar. 28 hit a record high of 67,246.02 points during intraday trade before closing at 67,142.12. Analysts had attributed the surge last week to investors’ expectations of Pakistan reaching another long-term agreement with the International Monetary Fund (IMF). 

As Pakistan’s economic indicators register a slight improvement, stock buyers now expect cuts in the interest rate in the next monetary policy, fueling positive sentiments at the bourse.

“Stocks closed at an all-time high on speculations over the State Bank of Pakistan’s policy easing after the CPI inflation fell to 20.7 percent in March 2024,” Ahsan Mehanti, chief executive officer of Arif Habib Corporation, one of Pakistan’s leading business groups, told Arab News.

 Mehanti pointed out that cement sales surging by 3.85 percent on an annual basis, petroleum products’ sales rising by 4 percent and textile exports growing by 3 percent, and the surge in global crude oil prices contributed to the bullish close at stock market.

Shaharyar Butt, portfolio manager at securities brokerage firm Darson Securities, said encouraging developments at the economic front had also fueled positive sentiments at the stock market. 

“We saw a very positive day at the stock market which remained bullish throughout the day and closed at historic high level,” Butt told Arab News.

“The market hit an intraday high of 67,873 level with a gain of 986.95 points and managed to close at 67,756.03 level, up by 869 points.”

According to Topline Securities, the cement sector stole the spotlight, spearheading the market’s upward trajectory on Wednesday.

US dollar inflows in Pakistan through Treasury bills (T-bills) hit a 4-year high in March 2024, with the country attracting a net inflow of $82 million last month.

Pakistani analysts say foreign investment in government treasuries is an encouraging development that is fueling positive sentiments at the bourse.

“The major development after a long time is that the investors are making investment in the Pakistani rupee through Treasury Bills,” Butt said. “It is stirring positive sentiments at the stock market which was also reflected in today’s trading.”


Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

Updated 25 February 2026
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Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

  • Pakistan, Saudi Arabia signed strategic defense pact last year pledging aggression against one will be treated as attack on both
  • Deputy PM Ishaq Dar says enduring bonds with Islamic and Arab nations form vital pillar of Pakistan’s foreign policy 

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Wednesday that Pakistan’s defense pact with Saudi Arabia elevated its brotherly ties with the Kingdom to “new heights,” stressing that close ties with Arab and Islamic nations form a key pillar of Islamabad’s foreign policy. 

Pakistan and Saudi Arabia signed a Strategic Mutual Defense Agreement on Sept. 17 last year, pledging that aggression against one country would be treated as an attack on both, enhancing joint deterrence and formalizing decades of military and security cooperation.

Both nations agreed in October 2025 to launch an economic cooperation framework to strengthen trade and investment ties. 

“In the Middle East, our landmark Strategic Mutual Defense Agreement with Saudi Arabia has elevated our brotherly ties to new heights,” Dar said while speaking at the Pakistan Governance Forum 2026 event in Islamabad. 

The Pakistani deputy prime minister was speaking on the topic “Navigating International Relations Amidst Changing Geo-Politics.”

Dar noted that Pakistan has reinforced partnerships with other Middle Eastern nations such as the UAE, Qatar, Jordan, Oman, Egypt and Bahrain. He said these partnerships have yielded “concrete agreements” in investment, agriculture, infrastructure, and energy sectors. 

“Our enduring bonds with Islamic and Arab nations form a vital pillar of our foreign policy, and we will continue to expand our partnerships across Asia, Latin America, and Africa,” he said. 

Dar pointed out that the presidents of Kazakhstan, Uzbekistan and Kyrgyzstan have undertaken visits to Pakistan in recent months, reflecting Central Asian nations’ desire to boost cooperation with Islamabad.

On South Asia, the Pakistani deputy PM said Pakistan has successfully transformed its fraternal ties with Bangladesh into “a substantive partnership.”

“Similarly, the trilateral mechanism involving China, Pakistan, and Bangladesh has been launched with a view to expanding and deepening regional cooperation and synergy,” the Pakistani minister said. 

He said Islamabad has strengthened its “all-weather” partnership with China via the second phase of the multi-billion-dollar China-Pakistan Economic Corridor agreement and “unwavering support” from both sides for each other’s core interests. 

Dar said Pakistan had also reinvigorated its partnership with the US, advancing cooperation in trade, technology, investment, and regional stability. 

“This calibrated approach has enhanced our ability to navigate complexity with skill and confidence, ensuring that our national interests are served without compromising our core foreign policy principles,” he said.