ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday breached a major psychological barrier, surging past 99,000 points during intra-day trading before settling at 97,798.23, as analysts attributed the rally to investor optimism driven by falling lending rates and higher foreign exchange reserves.
The benchmark KSE-100 index climbed 2,057.40 points by 11:10 am, reaching 99,385.79 points from the previous close. However, the index closed at 97,798.23, marking an increase of 469.84 points or 0.48 percent.
Analyst Ahsan Mehanti of Arif Habib Corporation said bank levies on large deposits, surging global oil prices, and rupee stability were fueling investor optimism.
“Stocks remained bullish, led by scrips across the board, as investors weighed falling lending rates and the imposition of bank levies on large deposits following a drop in government bond yields,” he told Arab News. “Surging global crude oil prices, rupee stability, and higher forex reserves played a catalytic role in the record surge at the PSX.”
Last month, Pakistan’s external current account recorded a surplus of $349 million, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed in the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. Economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
In the past, the country faced a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation. Last year, Pakistan narrowly avoided a sovereign default by clinching a last-minute $3 billion IMF bailout deal.
Pakistani stocks break psychological 99,000 barrier on optimism over rates, reserves
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Pakistani stocks break psychological 99,000 barrier on optimism over rates, reserves
- An analyst attributes the intraday rally to broad-based gains across most economic sectors
- The stock market has remained bullish since the government slashed policy rate in November
ADB, Pakistan sign over $300 million agreements to undertake climate resilience initiatives
- Pakistan ranks among nations most vulnerable to climate change and has seen erratic changes in weather patterns
- The projects in Sindh and Punjab will restore nature-based coastal defenses and enhance agricultural productivity
ISLAMABAD: The Pakistani government and the Asian Development Bank (ADB) have signed more than $300 million agreements to undertake two major climate resilience initiatives, Pakistan’s Press Information Department (PID) said on Tuesday.
The projects include the Sindh Coastal Resilience Sector Project (SCRP), valued at Rs50.5 billion ($180.5 million), and the Punjab Climate-Resilient and Low-Carbon Agriculture Mechanization Project (PCRLCAMP), totaling Rs34.7 billion ($124 million).
Pakistan ranks among nations most vulnerable to climate change and has seen erratic changes in its weather patterns. In 2022, monsoon floods killed over 1,700 people, displaced another 33 million and caused over $30 billion losses, while another 1,037 people were killed in floods this year.
The South Asian country is ramping up climate resilience efforts, with support from the ADB and World Bank, and investing in climate-resilient infrastructure, particularly in vulnerable areas.
“Both sides expressed their commitment to effectively utilize the financing for successful and timely completion of the two initiatives,” the PID said in a statement.
The Sindh Coastal Resilience Project (SCRP) will promote integrated water resources and flood risk management, restore nature-based coastal defenses, and strengthen institutional and community capacity for strategic action planning, directly benefiting over 3.8 million people in Thatta, Sujawal, and Badin districts, according to ADB.
The Punjab project will enhance agricultural productivity and climate resilience across 30 districts, improving small farmers’ access to climate-smart machinery, introducing circular agriculture practices to reduce residue burning, establishing testing and training facilities, and empowering 15,000 women through skills development and livelihood diversification.
Earlier this month, the ADB also approved $381 million in financing for Pakistan’s Punjab province to modernize agriculture and strengthen education and health services, including concessional loans and grants for farm mechanization, Science, Technology, Engineering and Mathematics (STEM) education, and nursing sector reforms.
