The capital market began the week on a positive note, building on the momentum from last Friday, driven by easing political uncertainty and improving macroeconomic indicators.
Investor sentiment was buoyed by the conviction of former prime minister Imran Khan and his wife, Bushra Bibi, in a long-awaited verdict last Friday, which provided a sense of closure and lowered political temperature.
Expectations of a supportive monetary policy and robust current account data further added to the positive momentum.
“Market reacting positively to the political development last Friday, of Khan not being acquitted, as it now sees low political temperature in the near term,” said Muhammad Saad Ali, Director of Research at Intermarket Securities Ltd, speaking to Geo.tv.
“Politics was a key reason why the market had stalled in the past couple of weeks,” he added.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed 929.77 points, or 0.81%, to reach an intraday high of 116,201.85 on Monday. The market also recorded a low of 115,732.88 as trading activity reflected renewed investor confidence in a more stable political and economic outlook.
In a pivotal decision, Accountability Court Judge Nasir Javed Rana sentenced Khan and his wife to 14 and seven years in prison, respectively, while also imposing substantial fines. This politically significant verdict ended weeks of speculation, alleviating market concerns about prolonged political instability.
Finance Minister Muhammad Aurangzeb announced the government’s plan to launch Panda Bonds by June 2025 to strengthen Pakistan’s engagement with China’s capital markets.
Speaking in an interview, he said that Pakistan plans to raise approximately $200 million from Chinese investors through the issuance of the Panda Bond. He added that this initiative is part of a broader strategy to transition the economy towards export-driven growth and sustainable balance of payments.
The move aligns with the government’s ongoing efforts to expand the tax net and meet International Monetary Fund (IMF) conditions under the $7 billion Extended Fund Facility (EFF).
According to a statement issued by the Prime Minister’s Office on Sunday, Prime Minister Shehbaz Sharif has also highlighted the importance of digital growth, welcoming Pakistan’s inclusion in the World Economic Forum (WEF) and Digital Cooperation Organisation’s (DCO) Digital Foreign Direct Investment Initiative (DFDII).
The first project under this initiative will focus on digital infrastructure and services exports, aiming to attract significant Foreign Direct Investment (FDI).
