ISLAMABAD: The Pakistan Stock Exchange (PSX) closed above 92,000 points for the third time in a row on Thursday, with analysts attributing the bullish trend to market volatility triggered by reduced interest rates and investors selling their stocks for profit. 
Pakistan’s benchmark index settled at 92,304.32 points on Tuesday and 92,021.44 points on Wednesday. As per the stock market’s official website, the benchmark KSE-100 index increased by 499 points or 0.54 percent on Thursday to close at 92,520.48 points. 
The bullish trend has been observed in the market since Monday when Pakistan’s central bank cut its key policy rate by 250 basis points to 15 percent. This was the fourth straight reduction since June, as the country keeps up efforts to revive a sluggish economy with inflation easing.
“The market is responding to reducing interest rates and, importantly, is also picking up on the government’s razor-sharp focus on the economy evidenced by the push to increase tax-to-GDP, attract FDI, and restart privatizations,” Raza Jafri, chief executive officer of leading financial services corporation EFG Hermes Pakistan, told Arab News.
He highlighted how lower interest rates were helping in creating valuation multiples at the KSE-100 but their “positive impact on the real economy will come with a lag.”
Jafri said the rally this year was led by banks, fertilizers and pharmaceuticals, adding that a rotation toward the construction, auto and oil marketing sectors more aligned with economic recovery was witnessed.
“An analyst at Topline Securities said the market showed notable volatility, with the index reaching a peak of 92,967 and dipping to a low of 91,891 as investors capitalized on profit-taking in large-cap stocks,” Topline Securities said in a social media post.

The development comes as the South Asian nation’s economic indicators continue to improve after it secured a $7 billion, 37-month bailout package from the International Monetary Fund (IMF) in September. 
Last year, Pakistan narrowly avoided a sovereign default when it clinched a last-gasp $3 billion IMF bailout program. The country has suffered a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.

 

ISLAMABAD: Pakistan’s High Commissioner to Dhaka, Syed Ahmed Maroof, this week announced a new visa policy for Bangladeshi citizens, offering free business and visit visas with 48-hour processing time as both nations push to thaw historically frosty ties.
Pakistan and Bangladesh share a complex history, having been a single country known as East and West Pakistan until Bangladesh was born in 1971 after a war of liberation backed by Pakistan’s arch-rival and neighbor India. Nearly three million people were killed in the conflict.
Ties reached a new low in 2016 when Bangladesh executed several leaders of its Jamaat-e-Islami party on charges of committing war crimes in 1971. Pakistan called the executions and trials “politically motivated,” arguing that the convicts were being punished for taking a pro-Pakistan stance during the independence war.
The bitter ties have warmed since the ouster of former prime minister Sheikh Hasina on Aug. 5 after a student-led uprising in Bangladesh.
“I’m happy to announce that or to let you know that there are going to be no fees in two visa categories, one is a business visa and the other is a visit visa,” Maroof said on Wednesday.
“It’s a free-of-cost visa for Bangladeshis. Secondly, the visa is decided within 48 hours and thirdly, you don’t have to come to the Pakistan High Commission [to apply for the visa].”

He said Bangladeshi citizens who wanted to visit Pakistan needed to print out a form from the visa website that they would be required to present at the immigration desk in Pakistan in order to get a visa.
“But as a precaution, there are a few things they should always carry with them along with this paper,” he added. “They should have a proper verified place of where they will stay, in a hotel or with some friends or family, and a return ticket.”
Calling the new visa regime “pretty much straightforward and very simplified,” the official said the move would make travel much easier for Bangladeshis wishing to go to Pakistan.
“All in all, the new visa policy is amazing, wonderful and hassle-free,” Maroof concluded.
In September, Pakistan’s foreign office said Islamabad sought “robust, multifaceted relations, friendly relations” with Bangladesh to ensure peace and stability in the South Asian region.