KARACHI: Pakistan’s key stock index hit an all-time high of 80,000 points on Friday, with data showing the benchmark index posted a growth of nearly 100 percent in a year, as analysts attributed the recent surge to optimistic investors confident Islamabad will extract another bailout package from the International Monetary Fund (IMF).
The benchmark KSE 100 index crossed the key psychological barrier of 80,000 points to hit an all-time high of 80,059.87 points. This is an almost 100 percent increase recorded in the benchmark index since June 21, 2023.
However, following the profit-taking at higher levels— a situation where buyers sell shares at higher prices to gain maximum profit— the index dropped to 78,169 points during trading and closed at 78,810.49 points.
The index figure at the close shows that the benchmark has posted a growth of 96 percent in a year, according to the Pakistan Stock Exchange’s (PSX) data.
“Positive sentiments, led by a tax-laden budget which investors feel will help in getting IMF’s long-term loan, have tossed the index above the 80,000 level which was 40,000 a year back,” Muhammad Sohail, CEO of Topline Securities, told Arab News.
Pakistan’s Finance Minister Muhammad Aurangzeb presented the $67.76 billion federal budget for the fiscal year 2024-25 in parliament on June 12. Analysts expect the budget will play a pivotal role in Pakistan’s negotiations with the IMF to unlock yet another loan from the international lender.
Islamabad has set an ambitious tax revenue generation target of about Rs13 trillion ($46.55 billion) for the year fiscal year 2025 in the budget. The tax collection target has been increased more than 40 percent from the target for the current fiscal year, which ends on June 30.
Pakistan equity investors also celebrated the government’s move to refrain from an anticipated increase in capital gains tax (CGT) and tax on dividend income. In addition, the taxes imposed on the real estate sector will also make the stock market an attractive destination for investment, analysts said.
“Before the budget, there was a rumor in the Pakistan stock market that capital gains tax and tax on dividends is going to be increased,” Shehryar Butt, portfolio manager at Darson Securities said. “But after the budget, those taxes were not imposed. That was positive for the market.”
Butt said the budget presented by the incumbent government seemed to be as per the IMF’s directions and expectations.
“It is very likely that Pakistan will get a longer program of IMF after presentation of the budget and it has also been marked by international rating agencies including Fitch,” Butt noted, adding that global financial institutions are optimistic about Pakistan achieving its revenue collection target.
Analysts hope the stock market will continue to perform strongly and the KSE 100 index will add another 10,000 points in the coming days.
“Factors that would support the bullish sentiments at the stock market in coming days include inflation and the monetary policy easing,” Tahir Abbas, head of research at Arif Habib Limited, said.
Abbas said average annual inflation is expected to be around 12-12.5 percent while interest rates are expected to decline from the current 20.5 percent figure to around 16 percent in a year.
“Based on these factors we expect that the KSE 100 index would hover around the 88,000 level by the end current year,” he said.
Pakistan’s benchmark index posts nearly 100% growth in a year, hits 80,000 barrier
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Pakistan’s benchmark index posts nearly 100% growth in a year, hits 80,000 barrier
- Benchmark KSE 100 index hits all-time high at 80,059.87 level during intraday trading
- Analysts say surge due to investors’ optimism about Pakistan securing another IMF loan
UAE’s LuLu Exchange partners with Pakistan’s ABHI to offer instant wages, faster remittances
- Partnership aims to boost financial flexibility for low-income migrant workers in the Gulf
- Deal integrates earned-wage access with cross-border transfers through LuLu’s remittance network
ISLAMABAD: UAE financial services firm LuLu Exchange has partnered with Pakistan-founded fintech ABHI to provide instant earned-wage access and faster cross-border remittances for migrant workers in the UAE, the companies said on Thursday.
The agreement aims to allow workers to withdraw a portion of their already-earned salaries at any time of the month and immediately transfer money to their families overseas, instead of waiting for monthly payroll cycles. The UAE hosts more than eight million expatriate workers, largely from South Asia, who depend heavily on remittances to support households back home.
Announcing the partnership, LuLu Exchange said it would combine its remittance network with ABHI’s digital platform to help low-income workers manage liquidity and avoid delays that often push migrant laborers into informal borrowing.
“At Lulu Exchange, we believe that timely access to earnings is a fundamental need and this collaboration enables workers to support their families with greater control and confidence,” Thampi Sudarsanan, CEO of LuLu Exchange UAE, said in a statement.
“Partnering with ABHI allows us to take a decisive step toward reshaping financial access for the UAE’s workforce. We are creating a powerful ecosystem that places customer empowerment at its core by merging ABHI’s innovative EWA technology with our trusted remittance network.”
Earned Wage Access, or EWA, is an increasingly common fintech model that allows employees to receive part of their accumulated wages ahead of payday. Gulf governments have been encouraging regulated digital-payments systems to improve workers’ financial stability and reduce dependence on high-cost loans.
Omair Ansari, co-founder and CEO of ABHI Middle East Limited, said the partnership would help migrant workers send money home with fewer financial strains.
“Partnering with LuLu Exchange, a trusted name synonymous with excellence and accessibility in financial services, allows us to enable workers to gain control over their earnings and support their families back home without financial strain,” he said.
“By integrating ABHI’s technology with LuLu’s deep market expertise, this collaboration represents a step forward in advancing financial inclusion and delivering true economic empowerment.”
ABHI, founded in Pakistan in 2021, has expanded to the UAE and Saudi Arabia and now serves more than one million users and 5,000 businesses across the region. The company says it has processed more than $500 million in transactions to date.
LuLu Exchange is part of LuLu Financial Holdings, one of the Gulf’s largest remittance and foreign-exchange operators, serving millions of expatriate workers in the UAE and the wider Middle East.
The companies said their partnership is intended to make financial access more secure and predictable for migrant communities that form the backbone of the UAE’s labor force.
