- The KSE-100 index jumped 1.26% to close at 115,272.08 points.
- Analyst says market traded higher after ruling in £190m case.
- According to him, the current account surplus also helped to boost investor morale.
Stocks rebounded on Friday as investor confidence improved sharply following a long-awaited accountability court verdict in the £190 million case against former Prime Minister Imran Khan and his wife, Bushra Bibi, ending weeks of uncertainty.
The Pakistan Stock Exchange’s (PSX) stock benchmark KSE-100 index jumped 1,435.34 points, or 1.26 per cent, to close at 115,272.08.
“The market traded higher today after the court ruling. The verdict puts an end to the prevailing uncertainty that had created a situation over the past two weeks,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
He added: “The current account surplus also helped to boost morale, giving investors confidence that the government is still resolutely following the IMF plan. »
In a much-anticipated ruling, accountability court judge Nasir Javed Rana convicted former Prime Minister Imran Khan and his wife, Bushra Bibi, sentencing them to 14 and seven years in prison, respectively.
The court also imposed heavy fines on the couple. This verdict, while politically significant, gave market participants a sense of closure, eliminating the element of political uncertainty.
Samiullah Tariq, head of research at Pak-Kuwait Investment Company, said the better-than-expected balance of payments figures supported market sentiment.
The State Bank of Pakistan (SBP) has announced the refinancing of $2 billion of deposits by the UAE, providing much-needed fiscal relief.
Prime Minister Shehbaz Sharif confirmed the development earlier this week following discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan.
Pakistan’s foreign exchange reserves increased by $30 million to $11.725 billion for the week ending January 10, supported by a current account surplus of $944 million in the first five months of the exercise 25.
This marks a significant turnaround from the $1.67 billion deficit recorded during the same period last year. Workers’ remittances also jumped 33%, reaching $17.8 billion in the first half of FY25, compared to $13.4 billion in the same period last year.
The government’s ongoing efforts to stabilize the economy include plans to issue yuan-denominated Panda bonds, which are expected to raise $200 million to $250 million from Chinese investors by the end of the fiscal year.
Finance Minister Muhammad Aurangzeb expressed optimism that IMF bailout conditions would be met and highlighted the positive trajectory of sovereign credit ratings.