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
Pakistan says it is moving toward phased crypto regulation after Binance, HTX approvals
- The country is among the world’s largest crypto adoption markets, with nearly 40 million users
- Bilal bin Saqib says the government is not promoting crypto but moving to regulate the sector
ISLAMABAD: Pakistan’s top virtual asset regulatory official said on Sunday the country was laying the foundation for a phased and tightly supervised crypto framework after granting conditional approvals to two global exchanges, signaling a shift from years of regulatory ambiguity toward formal oversight of digital assets.
The Pakistan Virtual Assets Regulatory Authority (PVARA) said this week it had issued no objection certificates (NOCs) to global crypto exchanges Binance and Huobi (HTX). Pakistan has also signed a memorandum of understanding with them to explore what the finance ministry described as the “tokenization” of up to $2 billion in sovereign bonds, treasury bills and commodity reserves, an initiative aimed at boosting liquidity and attracting investors.
“The no objection certificate given to Binance and Huobi is the first practical step of this new thinking,” PVARA chief Bilal bin Saqib said at a briefing. “Let me make it clear that this NOC is not a shortcut. This is not a blanket approval.”
He said the approvals marked the start of a risk-mitigated, phased and supervised entry framework, adding that platforms would be subject to strict anti-money laundering and counter-terrorism financing requirements, ownership transparency checks and enforcement-linked licensing timelines.
“This is not a new experiment,” he said, pointing to phased regulatory approaches adopted in financial centers such as Dubai, the United Kingdom and Singapore, where firms are first brought under supervision before being allowed to expand operations.
Pakistan is among the world’s largest crypto adoption markets, with estimates putting the number of users between 30 and 40 million, despite the absence of a comprehensive regulatory framework. Saqib said ignoring the sector was no longer viable, warning that unregulated adoption posed greater risks to the economy and consumers.
“We don’t want to promote crypto,” he said. “We want to regulate crypto. Adoption is already there.”
He said the framework was designed to prepare Pakistan for longer-term developments in digital finance, including tokenized assets, compliance technology, blockchain analytics and digital payment infrastructure, while ensuring that local talent is channeled into regulated and productive use.
“For the international community, the message is clear,” Saqib said. “Pakistan is not running away from innovation. Pakistan is welcoming innovation. Pakistan is regulating innovation.”
