The Pakistan Stock Exchange (PSX) soared past the 111,000-point mark on Tuesday, continuing its upward trajectory for the 10th consecutive trading day. This surge reflects growing confidence in the country’s economic outlook.
Key factors driving this bullish momentum include the recent International Monetary Fund (IMF) loan disbursement and ongoing discussions about climate funding. Anticipation of the State Bank of Pakistan’s (SBP) policy rate cut — with the Monetary Policy Committee meeting scheduled for December 16 — has further fueled positive market sentiment.
Market Resilience and Recovery
On Monday, the KSE-100 Index initially dropped over 1,000 points due to concerns surrounding the government’s decision to form a committee addressing the Advances to Deposit Ratio (ADR) in the banking sector. However, the market swiftly rebounded, closing at 109,970 points, gaining 916 points by the end of the session.
Historic 100,000-Point Milestone
The PSX reached the historic 100,000-point mark on November 30, 2024, buoyed by economic stability indicators and the IMF loan disbursement. Investor confidence was further reinforced by Finance Minister Muhammad Aurangzeb’s assurance that a mini-budget was not on the horizon.
Earlier, on November 5, the SBP cut the policy rate by 250 basis points to 15 percent, citing faster-than-expected inflation reduction. This move contributed to the market’s bullish trend, reflecting optimism for continued economic improvement in Pakistan.
