Bors on Thursday extended as investor spirit, inspired by a significant upgradation of Pakistani banks by increasing optimism on a possible solution of circular debt crisis in the energy sector.
The market pace was strong amid anticipation of review of the ongoing International Monetary Fund (IMF), investors eagerly waited for the green light for the next loan installment, expecting to carry forward economic stability.
The Pakistan Stock Exchange (PSX) benchmark KSE -100 index increased by 1,009.70 points or 0.89%, closed at 115,094.23 points, marking a constant upward.
The index hit an Intrade high of 115,247.39, while the lowest level of the session was recorded at 114,429.93, in which investors increased the interest of buying interest amid positive economic growth.
Afaz Mustafa, CEO of Ismail Iqbal Securities, said, “Markets are up on a rally in energy shares due to the potential solutions of markets and upgradation of Pakistani banks by Moody’s banks.”
“Both these factors and a positive IMF are positive for the conversation and encouraging investors to buy,” he said, “he said.
Moody’s rating positively upgraded its outlook on Pakistan’s banking sector, which cited the flexibility of the region in better macroeconomic conditions and financial performance. This change aligns with a better approach of the government, as banks take significant risk to sovereign loans.
“We have changed our attitude on Pakistan’s banking system, which reflected the flexible financial performance of banks, as well as a year ago to improve the comprehensive economic conditions from very weak levels,” said Moody’s. The agency projects to increase Pakistan’s economy by 3% in 2025 after a growth rate of 2.5% in 2024 and 0.2% in 2023.
Meanwhile, the remittances of Pakistan workers continued their strong tendency, with 38.6% year-on-year to $ 3.1 billion in February 2025, which was above $ 2.2 billion in the same month last year, according to State Bank of Pakistan (SBP).
Depending on the month-by-month, the dispatch from the January figure increased by 3.8%. For the first eight months of the financial year (July-February 8mfy25), the remittance was a total of $ 24 billion, which reflects an enough increase of 32.5% compared to $ 18.1 billion in the same period last year.
Analysts increase economic reforms, improve incentives for banks and exchange companies, a stable rupee and skilled worker migration increases. Measures taken by SBP to curb illegal forex trade have also contributed to high flow.
At the policy level, an IMF team led by Mission Chief Nathan Porter is currently in Pakistan, for the first review of the $ 7 billion Expendent Fund Facility (EFF) safe last year. If the review is successfully completed, Pakistan is expected to receive the next $ 1 billion loan trench, which will support economic stability.
PSX saw a mixed session on Wednesday, as the KSE -100 index was 93.12 points, or 0.08%, 114,084.54 points, below 114,177.66 points recorded in the previous session. The highest index level of the day was 114,661.89 points, while the lowest was recorded at 114,001.50.
