As the KSE-100 Index surpassed the record 90,000 level for the first time during intra-day trading on Friday, Prime Minister Shehbaz Sharif said the rise in the stock market had come in line with “investors’ confidence in the government policies”.
According to a statement from the Prime Minister’s Office (PMO), the prime minister congratulated the nation on the “historic achievement” of surpassing 90,000 points in the Pakistan Stock Exchange’s (PSX) KSE-100 Index.
“After 14 years, such a rapid increase in the stock market is the result of the tireless efforts of the economic team,” PM Shehbaz was quoted as saying in the statement.
“Since March 2024, the stock market has seen a 36% increase, with a decrease in inflation and overall economic stability credited to the economic team.”
The inflation rate dropped from 38% in May 2023 to 6.9% in September 2024, the prime minister added.
PM Shehbaz further said remittances sent by overseas reached at record $8.8 billion in the last quarter, and the current account was recorded in surplus in the last two consecutive months.
Contracts with independent power producers (IPPs) were reviewed for the relief of electricity consumers, the prime minister noted.
The $7 billion long-term facility from the International Monetary Fund (IMF) would further improve the economy, PM Shehbaz maintained.
“The dreams of those who brought Pakistan to the brink of default have been shattered.” he remarked. “We saved the state by sacrificing our politics.”
KSE-100 Index hits record high
The PSX witnessed another bullish session as its benchmark KSE-100 closed near record 90,000 level after the index surpassed it for the first time during intra-day trading on Friday.
The stock market has been on an upward trend in recent weeks on account of improved economic indicators and expectations of a significant policy rate cut by the State Bank of Pakistan (SBP) in its upcoming Monetary Policy Committee (MPC) meeting, which is scheduled for November 4, 2024.
Analysts anticipate a potential interest rate cut of at least 200 basis points, driven by easing inflationary pressures.