The capital market started Wednesday’s session on a positive note, rebounding after two consecutive sessions of losses, driven by an upward correction.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained 1,697.54 points, or 1.46 per cent, to hit an intraday high of 117,750.22 points.
“The initial rebound can be attributed to an upward correction from yesterday’s 2,500 point decline and a recovery in energy stocks,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. Geo.tv.
Another reason for the market optimism was the expected visit to the bourse by Prime Minister Shehbaz Sharif, who is in the port city for a one-day visit. The Prime Minister is expected to award PSX the title of second best performing exchange in the world in 2024.
Additionally, at a cabinet meeting the day before, the Prime Minister announced the rollover of a $2 billion loan from the UAE, which provides tax relief to the government.
Samiullah Tariq, head of research at Pak-Kuwait Investment Company, told Geo.tv: “(The) market is rebounding after falling in the last two sessions. In addition, (the) Prime Minister is also coming to the stock exchange today. ”
Another factor contributing to the market rise is the government’s plan to resize 42 ministries and their 400 attached departments by June 30, 2025, to reduce expenses and improve efficiency.
Finance Minister Muhammad Aurangzeb, speaking at a press conference on Tuesday, revealed, “We have decided to resize five or six departments in each phase.”
The minister revealed that 60% of vacant permanent positions, a total of 150,000, have been eliminated or declared “disappearing positions”, creating a tangible financial impact.
The State Bank of Pakistan (SBP) reported that the government’s total debt increased by Rs 1,452 trillion, or 2.1 percent, during the first five months of FY25 to 70,366 000 billion rupees in November 2024. This increase is attributed to the high level of government. spending needs and repayment of external debt.
Additionally, the State Bank of Pakistan (SBP) reported that the government’s total debt increased by Rs 1,452 billion, or 2.1 percent, in the first five months of FY25 to 70,366 billion rupees in November 2024.
The KSE-100 index ended Tuesday’s session at 116,052.68, marking a decline of 202.44 points, or 0.17 percent, from the previous session’s close of 116,255.12.