The stock market recorded modest gains on Wednesday, driven by strong foreign investment inflows, rising global crude oil prices, and heightened expectations of further monetary easing by the State Bank of Pakistan (SBP).
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index rose by 253.96 points (0.22%) to close at 113,342.43, up from its previous close of 113,088.47. The index touched an intraday high of 114,029.75, while the session’s lowest level was recorded at 113,060.25.
“World Bank (WB) support for the privatization of state-owned enterprises (SOEs), a pledge of over $40 billion in investment, and WB’s praise for the government’s commitment to reforms triggered the bullish run at PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
Investor sentiment received a major boost after Prime Minister Shehbaz Sharif welcomed a $40 billion investment from the World Bank on Monday, calling it a “new chapter” in Pakistan’s development.
The WB’s investment is divided into two key segments: $20 billion for Pakistan’s private sector under the International Finance Corporation (IFC) and another $20 billion allocated for public sector development projects. These funds will support health, education, youth development, and infrastructure improvements.
Meanwhile, Pakistan’s economic team is preparing for the upcoming International Monetary Fund (IMF) review, scheduled for March 4, under the $7 billion Extended Fund Facility (EFF). The IMF Executive Board is expected to approve a $1 billion tranche by April 2025.
So far, Pakistan has secured $5.5 billion in foreign loans this fiscal year, including IMF disbursements, but this amount remains significantly lower than the projected inflows of $19 billion for FY25.
Pakistan’s IT sector has demonstrated strong performance, recording $313 million in exports for January 2025, reflecting an 18% year-on-year increase.
Although monthly exports declined by 10% compared to December 2024, January’s figure remains above the 12-month average of $303 million, marking the 16th consecutive month of year-on-year growth since October 2023.
Cumulatively, IT exports for the first seven months of FY25 (July–January) have surged 27% YoY, reaching $2.18 billion.
“Surging global crude oil prices, strong export data, upbeat earnings in the fertilizer, cement, and banking sectors, and expectations of further SBP policy easing amid low inflation played a key role in the bullish momentum,” noted Mehanti.
The cement sector remained a top performer, benefiting from lower coal prices and ongoing infrastructure development projects. The banking sector also posted strong gains ahead of earnings announcements from commercial banks.
On Tuesday, the PSX staged a sharp recovery, breaking a four-session losing streak as investors capitalized on attractive stock valuations and sector-specific gains.
The KSE-100 Index surged by 1,344.95 points (1.2%) to close at 113,088.48 on Tuesday, after touching an intraday high of 113,252.55.
