Pakistan’s benchmark index hits 60,000 and is trading at a record high

After a lengthy period of uncertainty, Pakistan’s benchmark index broke beyond 60,000 points on Tuesday to trade at an all-time high of 60,500.61, according to statistics from the Pakistan Stock Exchange.

Investors anticipate that the central bank would reduce the rate, which is now fixed at 22%.

The Pakistan Bureau of Statistics said that for the week ending November 23, the nation’s inflation rate was 41.13 percent.

Given that gas prices have risen by more than Rs 1,100 in the last year, reports indicate that the high costs have contributed to an increase in inflation.

Pakistan has long been embroiled in a serious situation. In July, the International Monetary Fund (IMF) authorized a USD 3 billion loan package to prevent a sovereign debt default, which helped the index rise to a record high despite challenges.

The international lender with its headquarters in Washington granted the first payment of USD 1.2 billion in addition to authorizing the USD 3 billion loan in July of this year.

According to analysts, the market is also anticipating the successful staff-level agreement for the second tranche of funding under the current IMF Standby Arrangement, as well as additional foreign currency inflows from multilateral organizations and the anticipated December delivery of the funds.

Interestingly, the Pakistani stock market has been rising steadily ever since it passed the 53,000-point threshold. Consecutive weeks of rises in the market’s performance are indicative of investors’ favorable mood.

Strong purchasing activity has supported the spike in a number of industries, most notably the energy industry, which has attracted a lot of attention and seen notable increases in share prices for its businesses.

Pakistan’s interim finance minister, Shamshad Akhtar, said last week that the country’s cash-strapped economy has seen significant disruptions due to political instability over time, which necessitates fundamental improvements.

According to the minister, prolonged actions, external shocks, and delays in structural changes have made macroeconomic stability more challenging during the last ten years.

According to Akhtar, Pakistan is investigating ways to exchange debt for natural capital with other partners.