ISLAMABAD: On Thursday, stocks hit a new all-time high, surpassing the 94,200-point mark, driven by strong expectations of an economic soft landing following reports that the International Monetary Fund (IMF) is unlikely to press Pakistan to introduce a mini-budget.
As of 12:22 p.m., the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index had surged by 865 points, reaching a record level of 94,225 points.
Investors’ confidence is being bolstered by the IMF team’s ongoing, favorable review, which is pushing the market into unprecedented territory. This development increases the likelihood that Pakistan will complete the $7 billion Extended Fund Facility (EFF) program.
The IMF mission, which arrived in Islamabad on November 11, reportedly expressed approval of an increase in Pakistan’s tax-to-GDP ratio by nearly 1.5 percentage points—a notable achievement by the Federal Board of Revenue (FBR). This progress has alleviated the need for additional tax measures through a supplementary finance bill.
Previously, the IMF had set a target for Pakistan to increase its tax revenues by 1.5% of GDP in the fiscal year 2024-25, aiming for a 3% rise over the course of the 37-month program. However, recent reports suggested that the IMF may request a mini-budget to address performance target “deviations.” Talks had been planned to begin next week, earlier than the first IMF review scheduled for early 2025.
Experts attributed the record-breaking performance to strong earnings prospects for blue-chip stocks. “Rupee stability, reduced fears of a mini-budget, and lower bank lending rates have spurred a strong bull run in the country’s capital markets,” they said.
Today’s rally saw significant activity in sectors like commercial banking, oil and gas exploration, oil marketing, and power generation.
Major support came from industry heavyweights, including MCB Bank, Meezan Bank Limited, National Bank of Pakistan, Hub Power Company, Mari Petroleum Company, Oil & Gas Development Company, Pakistan Petroleum Ltd, and Sui Northern Gas Pipelines Limited.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
