The Pakistan Stock Exchange (PSX) has reached a historic milestone, with the KSE-100 index closing at 117,974.02 points, an unprecedented high. This remarkable performance saw the index climb 972.93 points, marking an increase of 0.83%.
Key market contributors, including HUBC, MARI, ENGROH, SYS, and PPL, collectively boosted the index by 551 points. Trading activity also hit new highs, with a turnover of Rs 32 billion and 543 million shares traded.
Market experts credited this surge to optimism about the government reaching an agreement with banks to reconcile the long-standing circular debt issues in the energy sector. This deal involves financing of Rs1.25 trillion at favorable rates for Pakistan Holding Limited (PHL), aimed at tackling Rs1.5 trillion in energy sector circular debt.
Additionally, analysts highlighted positive developments with the International Monetary Fund (IMF). The IMF recently shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani officials, signaling progress toward a potential $7 billion Extended Fund Facility. Investor sentiment has also been bolstered by Pakistan’s ability to secure borrowing from domestic banks without raising public debt.
Experts are optimistic that the resolution of circular debt and other steps toward economic recovery will foster long-term market growth. However, concerns remain as the issues driving circular debt have not been completely addressed.
