KARACHI: The Pakistan Stock Exchange (PSX) witnessed a robust start to the business day as the benchmark KSE-100 Index soared by 594 points, closing at a record-breaking 94,786 points. The surge, driven by investor confidence and positive market momentum, marked one of the most significant gains in recent weeks.
The rally coincided with a notable improvement in the country’s foreign exchange reserves, bolstering market sentiment. According to data released by the State Bank of Pakistan (SBP) on Thursday, the reserves rose by $84 million during the week ending November 8, reaching $11.26 billion. This represents a 0.75% week-on-week increase.
Meanwhile, Pakistan’s total liquid foreign reserves saw a slight uptick, growing by $33.7 million or 0.21% to $15.97 billion. However, reserves held by commercial banks experienced a decline, dropping by $50.3 million or 1.06% to $4.71 billion.
Economic Team’s Optimism
Adding to the positive economic outlook, Minister of State for Finance Ali Pervaiz Malik expressed optimism about ongoing discussions with the International Monetary Fund (IMF). Speaking to Samaa TV, Malik highlighted that negotiations were progressing in a positive direction, signaling brighter economic prospects for Pakistan.
Malik emphasized that significant strides had been made in stabilizing the economy over the past year. “The current account deficit has shrunk to just $100 million in the first quarter, thanks to strategic measures such as boosting remittances and exports,” he noted.
Clarifications on Fiscal Concerns
Addressing concerns about a potential mini-budget or an increase in the petroleum levy, Malik clarified that such measures were speculative and premature. He assured that the government’s primary focus remains on external financing to sustain economic growth.
The market’s rally reflects growing confidence among investors in the government’s ability to navigate economic challenges and sustain progress. The improved fiscal indicators, coupled with positive signals from the IMF, have set a promising tone for the country’s financial future.