Rally is commenced with PM's warm reception
In a significant development, Pakistan's benchmark stock index, the KSE-100, surpassed the 141,000-point level for the first time, marking a historic milestone. This rally in the Pakistan Stock Exchange (PSX) was welcomed by Prime Minister Shehbaz Sharif, who attributed the achievement to a groundbreaking US-Pakistan trade deal.
The trade deal, which reduced US tariffs on Pakistan's imports to 19 percent, has given Pakistan an edge over regional competitors and signaled stronger bilateral economic support. Moreover, the deal supports the development of Pakistan's untapped oil reserves, boosting investor confidence in the country's economic prospects.
The reduction in fuel prices has also played a crucial role in the rally. By helping to contain inflation, it has maintained a favorable investment climate. The Consumer Price Index stood at 4.1% year-on-year in July, a figure that bodes well for the economy.
Other factors contributing to the KSE-100's record high include positive corporate earnings, attractive market valuations, and a slightly appreciated rupee against the US dollar. The Federal Board of Revenue (FBR) exceeding tax collection targets has further strengthened economic fundamentals.
The rally in oil and export-related stocks was significant, helping the PSX surpass the 141,000-point threshold. This event, which occurred on Friday, is being cheered by investors and suggests a positive outlook for Pakistan's economy.
Prime Minister Shehbaz Sharif called the rally a sign of investor confidence in government policies. The government, which has identified facilitating business and investment as a top priority, believes that these developments may attract more business and investment to Pakistan.
The reforms in the FBR, which have eased pressure on the business community and improved the tax system, are seen as a significant factor in the improving economy. These reforms, along with the US tariff reduction and the government's focus on business facilitation, are believed to have a positive impact on the business community.
In conclusion, the KSE-100's record high is a significant step forward for Pakistan's economy. It signifies increased confidence in the country's economic recovery and growth potential, and it is a testament to the government's efforts to facilitate business and investment.
The government's focus on Business facilitation, coupled with the US tariff reduction and reforms in the Federal Board of Revenue (FBR), have been beneficial in attracting credit from the finance sector and boosting investor confidence. This, in turn, has contributed to the growth of businesses in Pakistan, as evidenced by the KSE-100's record-breaking index level, surpassing the 141,000-point threshold.
The improvement in the business environment, marked by easing pressure on the business community, streamlining the tax system, and supporting the development of untapped oil reserves, has collectively led to an increase in corporate earnings and attractive market valuations, further propelling the growth of businesses in Pakistan.
