Thursday, November 21, 2024

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PSX Hits Record High, Surpasses 94,200 on Optimistic Economic Outlook

The Pakistan Stock Exchange (PSX) soared to unprecedented heights on Thursday, as the benchmark KSE-100 Index breached the 94,200-point mark, setting a new intraday high. The rally was driven by renewed investor confidence following reports that the International Monetary Fund (IMF) had expressed no concerns over Pakistan’s revenue collection progress, alleviating fears of a potential mini-budget with additional taxes.

By 12:22 pm, the KSE-100 Index had surged by 865 points, reaching an all-time high of 94,225 points. Khurram Schehzad, CEO of Alpha Beta Core, attributed the market’s strong performance to the ongoing positive review by the IMF team, which has boosted investor sentiment and propelled the index into uncharted territory.

Schehzad emphasized that the smooth progress in IMF discussions increases the likelihood of Pakistan successfully completing the $7 billion Extended Fund Facility (EFF) program.

According to sources, the IMF has acknowledged Pakistan’s achievement in raising the tax-to-GDP ratio by nearly 1.5 percentage points — a milestone credited to the Federal Board of Revenue (FBR). This success reduces the need for additional tax measures via a supplementary finance bill, easing fiscal pressures on the economy.

It’s worth noting that the IMF had previously set a target for Pakistan to increase its tax revenue by 1.5% of GDP in the fiscal year 2024-25, aiming for a cumulative 3% rise over the 37-month EFF program.

Earlier reports indicated that the IMF was planning an urgent mission to Pakistan next week due to deviations in performance targets, with expectations of discussions on a possible mini-budget for course correction.

Thursday’s trading session saw a buying spree in blue-chip stocks, particularly in the commercial banking, oil and gas exploration, oil marketing companies (OMCs), and power generation sectors.

Leading the market surge were major players like MCB Bank, Meezan Bank Limited, National Bank of Pakistan, Hub Power Company, Mari Petroleum Company, Oil & Gas Development Company, Pakistan Petroleum Ltd, and Sui Northern Gas Pipelines Limited, all contributing significantly to the record-breaking performance of the PSX.

 

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