ISLAMABAD: The Pakistan Stock Exchange on Tuesday surged past 96,000 points to hit a record high in intraday trading, with analysts attributing the rally to a current account surplus in October due to higher remittances, exports and foreign direct investment.

The benchmark KSE-100 index climbed to a record 935.66 points or 0.98 percent to stand at 95,931.33 from the previous close of 94,995.67 points. It touched the 96,036.48 mark for the first time at 2:44pm PST. 

Ahsan Mehanti at the Arif Habib Corporation told Arab News potential investors had weighed surging foreign reserves as well as government decisions over reforms for loss-making state-owned enterprises, independent power producers and energy pricing.

“Stocks bullish on reports of current account surplus of $349 million in Oct. 2024 on higher remittances, exports and FDI rising by 32pc to $904m for Jul-Oct. 2024,” he said. “The next triggers could be easing political noise amid protest calls by opposition.”

Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments. 

A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.

A bullish trend has been observed at the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. It’s economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.

Before this, the country went through a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.

Last year, Pakistan narrowly avoided a sovereign default by clinching a last-gasp $3 billion IMF bailout deal. 

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif met Saudi Arabia’s Deputy Interior Minister Dr. Nasser bin Abdulaziz Al-Dawood on Tuesday, with the premier expressing satisfaction over the implementation of recently signed business agreements between the two countries worth $2.8 billion, his office said.
Pakistani and Saudi businesses signed 27 memorandums of agreement (MoUs) worth $2.2 billion on Oct. 10 during the Saudi investment minister’s visit to Islamabad. The Saudi minister announced on Oct. 30 whilst Sharif was visiting the Kingdom that both sides had agreed to enhance the number of business agreements from 27 to 34 and increase their value from $2.2 billion to $2.8 billion.
Al-Dawood called on PM Sharif in Islamabad where the two leaders discussed bilateral relations, the Prime Minister’s Office (PMO) said. During the meeting, Sharif thanked the Saudi leadership and government for always supporting Pakistan.
“The Prime Minister expressed his satisfaction over the implementation of MoUs between Saudi Arabia and Pakistan with regard to Saudi Investment of 2.8 billion USD in Pakistan,” the PMO said. 

The two sides also discussed the escalation in tensions in the Middle East and Israel’s war on Gaza. Sharif appreciated the Saudi leadership for holding the Arab-Islamic Summit this month and praised Saudi Crown Prince Mohammed bin Salman’s stance on the Palestine issue. 
“The Prime Minister applauded the leadership role of Saudi Arabia and the efforts of HRH Crown Prince Mohammed bin Salman in unifying the Ummah to collectively seek an end to violence in Gaza due to Israel’s genocidal actions,” the PMO said. 
Speaking on the importance of defense ties between Pakistan and the Kingdom, Sharif Al-Dawood’s visit would help bring the two countries closer in terms of cooperation in these areas. 
Pakistan has increasingly sought to strengthen trade and investment ties with friendly nations, particularly the Kingdom, which has promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up its dwindling foreign reserves and fight a chronic balance of payment crisis.
Sharif has actively pursued economic diplomacy in the region in recent months, seeking more investments and enhancing trade and regional connectivity for Pakistan. The South Asian country has sought to leverage its position as a transit and trade hub connecting landlocked Central Asian countries with the rest of the world and also pushed for mutually beneficial economic partnerships with Gulf countries.