The bourse opened on a strong note Monday, buoyed by record-breaking remittances and growing optimism over foreign exchange reserves ahead of the fiscal year-end.
“Equity market participants are reacting positively to the SBP Governor’s announcements made today: expected record remittances of $4bn, a potential current account surplus for FY25, and SBP reserves exceeding $14 billion by June, driven by $5 billion in fresh inflows,” Head of Research at Al Meezan Investment Amreen Soorani told Geo.tv.
“This strengthens Pakistan’s external position, particularly under the IMF program, and signals improved currency and inflation stability – factors crucial for investor confidence,” she added.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 116,177.18 points in early trading, gaining 1,323.85 points, or 1.15%, over the previous close of 114,853.33.
The session’s low was recorded at 115,246.20 points, still reflecting a gain of 392.87 points or 0.34%.
Investor sentiment was bolstered by encouraging comments from the State Bank of Pakistan (SBP) Governor, who projected that foreign exchange reserves could exceed $14 billion by June 2025. The improvement is expected on the back of record monthly remittances of 4.1 billion in March and anticipated inflows of $4-5 billion before June.
According to the SBP, Pakistan’s external debt repayment obligation stands at $26 billion. However, around $16 billion, including $12.4 billion, is expected to be rolled over or refinanced, while $8 billion has already been repaid, easing immediate pressure on the external account.
The positive open follows a turbulent session on Friday when the benchmark index plunged by 1,335.88 points, or 1.15%, to close at 114,853.33 amid broader concerns over global trade tensions and domestic policy uncertainty.
