PTBP Web Desk
Financial landscape has achieved a historic milestone as the benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) surpassed the 100,000-point mark for the first time, an event celebrated by Prime Minister Shehbaz Sharif.
This unprecedented surge reflects a robust economic confidence, spurred by government policies and a strategic economic framework.
In an official statement released on Thursday, Prime Minister Shehbaz Sharif attributed this landmark to the unwavering trust of investors in the government’s economic initiatives and the relentless efforts of the economic team. “The stock exchange crossing 100,000 points for the first time in history reflects the business community’s and investors’ trust in government policies,” he stated. This achievement not only marks a significant psychological and economic threshold but also underscores the positive trajectory of Pakistan’s economic policies.
The KSE-100 Index has witnessed a phenomenal 150% return, climbing from 40,000 to 100,000 points within just 17 months. Several factors have contributed to this remarkable performance:
Exchange Rate Stability: A stable currency environment has played a crucial role in boosting investor confidence. Stability in exchange rates reduces the risk associated with currency fluctuations, making investments more appealing.
IMF Support: The transition from one $3-billion Stand-By Arrangement with the IMF to a subsequent longer-term facility has provided Pakistan with the necessary financial backing to stabilize and grow its economy.
Sectoral Earnings: Improvements in earnings from sectors that heavily influence the index, like energy, finance, and manufacturing, have driven the market upwards. Enhanced profitability in these key areas has a direct positive impact on stock valuations.
Monetary Policy: A general mood for stocks has been fostered by monetary easing, where lower interest rates make borrowing cheaper for companies, potentially leading to expansion and higher stock prices.
Prime Minister Sharif, in his statement, not only celebrated this achievement but also outlined the government’s ongoing commitment to economic stability. He highlighted recent successes such as:
Inflation Control: Inflation rates have seen a decline, providing relief to both consumers and businesses, thereby fostering a conducive environment for economic activities.
Interest Rate Reduction: With interest rates dropping to 15%, borrowing costs have decreased, encouraging investment and consumer spending.
Record-High Remittances: The influx of remittances has been at an all-time high, injecting vital foreign currency into the economy, which supports the rupee and economic activities.
Despite these positive developments, Sharif acknowledged the presence of adversaries attempting to undermine the country’s progress. “The enemies of the country’s stability and progress are making malicious and futile attempts to derail the nation once again,” he noted, reaffirming his government’s resolve to protect and promote Pakistan’s economic journey.The prime minister’s pledge to work diligently for the country’s progress was not just a statement of intent but a promise to continue the economic policies that have led to this historic market performance. The focus remains on:
Ensuring economic stability through policy consistency.
Enhancing investor confidence through transparent governance.
Continuing reforms to attract both local and foreign investment. This event not only serves as a beacon of economic recovery and growth but also as a testament to the resilience and potential of Pakistan’s economy. The crossing of the 100,000-point barrier by the KSE-100 Index is not just a number; it’s a narrative of confidence, hard work, and strategic economic planning under the leadership of Prime Minister Shehbaz Sharif.
