The stock market extended its gains on Wednesday, fuelled by robust foreign investment inflows, soaring global crude oil prices, and heightened expectations of additional monetary easing by the State Bank of Pakistan (SBP).
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed 941.28 points, or 0.83%, reaching an intraday high of 114,029.75. The market recorded a low of 113,212.79 as investor confidence remained high across key sectors, particularly banking, cement, fertilizers, and energy stocks.
“WB [World Bank] support for SOEs privatisation, pledge [of] over $40 billion investment, and WB praising government commitment to reforms triggered the bull run at PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
Investor sentiment received a significant 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 components: $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, and youth development initiatives, as well as infrastructure improvements.
Meanwhile, Pakistan’s economic team prepares for the upcoming 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.
Pakistan has so far received $5.5 billion in foreign loans this fiscal year, including IMF disbursements, but the amount remains far below the projected inflows of $19 billion for FY25.
Pakistan’s information technology (IT) sector has shown robust performance, posting $313 million in exports for January 2025, reflecting an 18% year-on-year increase.
While monthly exports declined by 10% compared to December 2024, January’s figure remains higher than the 12-month average of $303 million, making it 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, robust data on export, upbeat earnings in fertilizer, cement and banking sectors and expectations for further SBP policy easing amid thin inflation played a catalyst role in the bullish run,” noted Mehanti.
The cement sector remained a top contributor, benefiting from lower coal prices and infrastructure development projects. The banking sector also saw strong gains, ahead of earnings announcements from commercial banks.
The PSX had staged a sharp recovery on Tuesday, snapping a four-session losing streak as investors took advantage of attractive stock valuations and sector-specific gains.
The KSE-100 Index surged by 1,344.95 points, or 1.2%, to close at 113,088.48 on Tuesday, after touching an intraday high of 113,252.55.
This is a developing story and is being updated with further details.
