The Pakistan Stock Exchange (PSX) opened the week on a bullish note Monday, buoyed by record-breaking remittances and growing optimism around foreign exchange reserves as the fiscal year draws to a close.
Investor sentiment was lifted by encouraging remarks from the State Bank of Pakistan (SBP) Governor, who shared a promising economic outlook. According to Amreen Soorani, Head of Research at Al Meezan Investment, market participants reacted positively to the SBP’s announcements, including:
- Expected record remittances of $4 billion,
- A potential current account surplus in FY2025,
- SBP reserves forecast to surpass $14 billion by June, driven by $5 billion in fresh inflows.
“These developments strengthen Pakistan’s external position, especially under the IMF program,” Soorani told Geo.tv. “They also point to greater stability in the currency and inflation – key factors that boost investor confidence,” she added.
The KSE-100 Index, PSX’s benchmark, surged to an intraday high of 116,177.18 points, gaining 1,323.85 points (1.15%) from Friday’s close of 114,853.33. Even the session’s low of 115,246.20 reflected a positive move, up 392.87 points (0.34%).
The rally comes after a volatile close last week, when the index dropped 1,335.88 points (1.15%) on Friday, amid global trade concerns and local policy uncertainties.
According to SBP figures, Pakistan’s external debt repayment obligation currently stands at $26 billion. However, relief is expected as around $16 billion — including $12.4 billion — is anticipated to be rolled over or refinanced. An additional $8 billion has already been paid off, significantly easing pressure on the external account.
Analysts view the combination of rising remittances, improved reserves, and reduced repayment pressure as signs of macroeconomic stabilization — all of which are contributing to renewed confidence in the equity markets.
