Business

Positive IMF talks push PSX to new highs

Published

1 year ago

Farwa

KARACHI: Pakistan Stock Exchange (PSX) on Monday skyrocketed to a new record as it crossed the 56,000 milestone for the first time in history as investors bet on the positive talks with the International Monetary Fund (IMF) delegation.

The KSE-100 index reached 56,378.91 points during the intraday trading, up by 987.55 or 1.78% from the previous close of 55,391.36 points.

The KSE-100 index at 10:44am. — PSX website

Capital market expert Saad Ali told Geo.tv that the market was extending last week’s gains as the International Monetary Fund (IMF) concluded technical talks without any issue.

“There are no signs of the IMF disallowing rate cuts,” he added.

The IMF’s mission began its review of Pakistan’s bailout package on November 2 and is expected to conclude by December 15.

The review will determine whether Pakistan will receive the second tranche of $700 million in December. The country received $1.2 billion in July from the global lender as the first instalment of the standby arrangement.

Last week, the benchmark index set a new milestone after it jumped past the 55,000 barrier on the ongoing IMF review, domestic institutional buying and reducing Pakistan Investment Bond (PIB) yields.

The benchmark KSE-100 index gained 4.3% in the week ended on Friday, marking its eighth consecutive weekly rise.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

6 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

7 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.