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
Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says
- State Bank says farm lending rose 16 percent year-on-year to Rs2.58 trillion
- Inflation eased to 5.8 percent in January as GDP growth hits 3.7 percent in Q1 FY26
KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase from the previous year, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC).
Agricultural financing is considered critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a large share of the workforce. The government has repeatedly emphasized expanding credit access to small farmers as part of broader efforts to boost productivity, stabilize food supply and support economic recovery under an IMF-backed reform program.
According to official data shared at the meeting, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1,412 billion in agricultural loans, while the number of borrowers increased to 2.97 million.
“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting an annual growth of 16 percent,” the State Bank governor said, according to a statement issued after the meeting.
He added that Pakistan had regained macroeconomic stability and that the economy was moving toward sustainable growth.
The governor said GDP growth in the first quarter of FY26 stood at 3.7 percent, while full-year growth was projected between 3.75 percent and 4.75 percent.
He also noted that headline inflation had declined to 5.8 percent in January 2026.
The committee reviewed measures to further expand credit access, including greater use of the central bank’s Zarkhez-e scheme to facilitate agricultural lending. Members also discussed promoting electronic warehouse receipt financing to enhance post-harvest liquidity and reduce distress sales of crops.
The statement said the purpose of electronic warehouse receipt financing was to “reduce forced sales of crops and strengthen linkages within the agricultural market.”
Agricultural lending has been a focus of Pakistan’s financial inclusion strategy, particularly as policymakers seek to improve rural incomes, stabilize food prices and strengthen export-oriented crop production amid broader economic reforms.
