ISLAMABAD: The Pakistan Stock Exchange (PSX) on Monday set a new record as it closed at 103,274.94 points, up by 1917.62 points or 1.89 percent, from the last close of 101,357.32 points.
The benchmark KSE-100 index was at 103,036 points at around 250pm on Monday, recording a 1.66 percent gain from Friday’s close of 101,357 points.
The development came as Pakistan’s statistics bureau said annual consumer inflation had slowed to 4.9 percent in November, lower than the government’s forecast, largely due to a high base a year earlier. This is the lowest CPI inflation rate in 6.5 years.
Analysts said the stocks showed record bullish activity amid upbeat data on CPI inflation, which was likely to ease the central bank policy. Pakistan has reduced interest rates by 700 bps since June in four consecutive cuts.
“Strong economic data and surging foreign exchange reserves [$11,418.5 million in week ending on Nov. 22] played a catalyst role in bullish activity at the PSX,” Ahsan Mehanti, chief executive officer (CEO) of Arif Habib Corporation, told Arab News.
Consumer inflation cooled from 7.2 percent in October, a sharp drop from a multi-decade high of nearly 40 percent in May 2023. The PSX breached the 100,000-mark for the first time on Thursday to close at 100,082 points. The South Asian country slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.
The market rally is also attributable to Pakistan’s new $7 billion loan agreement with the International Monetary Fund (IMF), approved in September, that has bolstered investor confidence, according to some analysts. The IMF’s disbursement of the first tranche of approximately $1 billion in September, along with fiscal and monetary reforms, has improved sentiment.
Muhammad Ali Khan, an investment banker and analyst, downplayed the IMF factor and pointed to low interest rates and a correction in the market, which had been undervalued for years, as the main reasons behind the bullish trend.
“The stock market had come down to very low valuations, especially in the region, the interest rate is going down and a lot of cash was sitting on the sidelines before this rally,” he told Arab News.
Khan was skeptical of the market performance in the long run, though he expected the market to go up to 110,000 points in the coming days before undergoing another correction.
“This is a speculative market at this point in my view, given that large-scale manufacturing, exports and all other major indicators are crippling,” he said.
“We came off the ventilator. That doesn’t mean we are healthy. IMF saved us, IMF did not solve anything for us.”
‘Off ventilator’: Pakistan stock market cruises past 103,000 points on upbeat inflation data
https://arab.news/8ud25
‘Off ventilator’: Pakistan stock market cruises past 103,000 points on upbeat inflation data
- Pakistan said on Monday annual consumer inflation in Pakistan had slowed to 4.9% in November, lowest in 6.5 years
- Strong economic data and surging foreign exchange reserves played catalyst role in bullish activity, analysts say
Security forces kill four militants in Pakistan’s volatile southwest, military says
- Balochistan, Pakistan’s largest province by land area bordering Iran and Afghanistan, has long been the site of a low-level insurgency
- The Balochistan government has recently established a threat assessment center to strengthen early warning, prevent ‘terrorism’ incidents
ISLAMABAD: Pakistani security forces gunned down four militants in an intelligence-based operation in the southwestern Balochistan province, the military said on Tuesday.
The operation was conducted in Balochistan’s Kalat district on reports about the presence of militants, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
The “Indian-sponsored militants” were killed in an exchange of fire during the operation, while weapons and ammunition were also recovered from the deceased, who remained actively involved in numerous militant activities.
“Sanitization operations are being conducted to eliminate any other Indian-sponsored terrorist found in the area,” the ISPR said in a statement.
There was no immediate response from New Delhi to the statement.
Balochistan, Pakistan’s largest province by land area bordering Iran and Afghanistan, has long been the site of a low-level insurgency involving Baloch separatist groups, including the Balochistan Liberation Army (BLA) and the Balochistan Liberation Front (BLF).
Pakistan accuses India of supporting these separatist militant groups and describes them as “Fitna Al-Hindustan.” New Delhi denies the allegation.
The government in Balochistan has also established a state-of-the-art threat assessment center to strengthen early warning and prevention against “terrorism” incidents, a senior official said this week.
“Information that was once scattered is now shared and acted upon in time, allowing the state to move from reacting after incidents to preventing them before they occur,” Balochistan Additional Chief Secretary Hamza Shafqaat wrote on X.
The development follows a steep rise in militancy-related deaths in Pakistan in 2025. According to statistics released by the Pakistan Institute for Conflict and Security Studies (PICSS) last month, combat-related deaths in 2025 rose 73 percent to 3,387.
These included 2,115 militants, 664 security forces personnel, 580 civilians and 28 members of pro-government peace committees, the think tank said.
