KARACHI: As 2023 draws to a close, Pakistan’s equity market has seen a remarkable 55 percent surge, its most significant in 13 years, despite the national currency depreciating 20 percent against the greenback, marking a year of dynamic and impactful financial transformations.
In the first half of the outgoing year, Pakistani capital markets faced substantial challenges, with ongoing economic issues and political uncertainty fueling rumors of an imminent default on the country’s international obligations.
However, a pivotal shift took place in the middle of 2023 when the coalition administration of former prime minister Shehbaz Sharif managed to secure a $3 billion standby arrangement (SBA) from the International Monetary Fund (IMF), providing a much-needed financial lifeline to the country.
The signing of the SBA brought significant jubilation to the equity market, heralding newfound optimism and stability after a period of prolonged uncertainty and turmoil. The benchmark KSE100 Index surged by 55 percent that implied a 24 percent increase in dollar terms.
According to Topline Securities, such massive gain was witnessed after a period of 13 years, following the 60 percent increase in the index in 2009.
“Pakistani stock market went up by more than 50 percent last year and it was up 65 to 70 percent from the second half of last year,” Ali Farid Khwaja, Chairman of KTrade Securities, told Arab News. “So, it was one of the best performing asset classes in Pakistan and one of the best performing markets among the emerging markets globally.”
Khwaja noted multiple drivers for the surge, with the IMF program and the subsequent increase in investor confidence being the most significant.
“In the first half of the year, people were worried that Pakistan could default,” he added.
The key stock index, KSE100, closed its year-end trading session at 62,451 points after hitting the all-time high of 66,426 from 40,420 recorded during the last trading session of 2022.
The bulls also found a plausible reason to further tighten their grip at the equity market after the caretaker government managed to secure financial support from friendly nations like Saudi Arabia and the United Arab Emirates (UAE).
Ahsan Mehanti, CEO of Arif Habib Corporation, also described the establishment of the Special Investment Facilitation Council (SIFC), a hybrid civil-military forum to fast-track decision making and encourage foreign currency inflow, as a positive development for the market.
He noted that it received “commitments of up to $100 billion from the Saudi government, UAE, Kuwait and Qatar.”
Mehanti maintained the Gulf countries’ financial assurances also convinced the IMF to release the funding under the SBA.
He noted that foreign corporates resorted to net buying of $73 million in 2023 after three years, recording highest inflows after a gap of eight years.
Pakistani financial analysts said they were optimistic about the stock market in 2024 due to cheap valuations, availability of liquidity, lack of investment avenues and expected interest rate fall from the historic high of 22 percent.
Unlike the equity market, the Pakistani currency market experienced one of the worst periods of depreciation, closing the year-end trade at Rs281.86 against the US dollar on Friday after the national currency lost about 20 percent value in the interbank market.
The rally in greenback after August 14, when the caretaker government took charge and the rupee came under further pressure amid speculation that the interim setup might allow the rupee to fall amid a tough situation in the open and black markets.
“Amid talks of default and turmoil there were three markets with different rates operating,” Zafar Sultan Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), said, adding: “One was the grey market which had touched Rs350. The open market rate stood at Rs335, and the rupee had depreciated to 307 against the dollar in the interbank market. It was a very alarming situation at that time.”
Paracha gave credit to the army chief, General Asim Munir, for taking necessary steps that brought stability to the market.
“Due to the administrative measures taken by the army chief and his team, the smuggling of dollar to the neighboring country [Afghanistan], money laundering, flight of capital, hoarding and speculation stopped,” he said. “It was after a long time the same rate in interbank and open markets prevailed.”
The government also cracked down on exchange companies involved in illegal trade and increased the minimum capital requirement for them from Rs200 million to Rs500 million.
As a result, the rupee gained strength in the interbank market, appreciating by nine percent from an all-time low of Rs307 to Rs282 against the greenback while strengthening it in the open market by 16 percent.
However, Pakistani financial experts said the national currency was likely to lose ground against the dollar in the foreseeable future due to external payment pressures.
“Considering Pakistan’s external payment risk and other factors, we expect the rupee in the interbank market to reach Rs310 against the US dollar by June 2024 and Rs325 by December 2024,” Muhammad Sohail, CEO of Topline Securities, said.
Pakistan’s equity market surges 55% in 2023 despite national currency’s 20% decline
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Pakistan’s equity market surges 55% in 2023 despite national currency’s 20% decline
- The massive market gain came after a period of 13 years, following the 60 percent increase in the KSE100 index in 2009
- Analysts remain optimistic about the stock market in 2024 but fear the rupee will fall due to external payment pressures
Pakistan PM calls for global cooperation for sustainable water management at Riyadh forum
- The One Water Summit, a joint initiative of Saudi Arabia, France, Kazakhstan and World Bank, aims to stimulate global partnerships for water resource management
- PM Shehbaz Sharif says it is their duty as leaders to ensure that water resources that have nourished civilizations for centuries must not be reduced to tales of past
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday called for transfer of technology, financing and international cooperation to ensure sustainable management of water for all as he addressed the One Water Summit in Riyadh, Saudi Arabia.
The summit, a joint initiative of Saudi Arabia, France, Kazakhstan and the World Bank, aimed for high-level political commitments to promote global cooperation and a coherent international approach toward water resource management.
Addressing the summit, Sharif said water was lifeblood of the planet, which transcended political boundaries, connected nations and fostered shared ecosystem, which was why his country attached great importance to transboundary cooperation.
“At the global level, I would submit for your kind consideration a number of steps to overcome water-related challenges. First, we need international cooperation and collaboration to ensure availability, sustainable management of water and sanitation for all,” he told attendees at the summit.
“Second, exchange of knowledge and expertise as well as transfer of technologies on innovative water management must be prioritized. Third, adequate funding for climate-resilient infrastructure and overcoming financing gap remains critical for climate-vulnerable countries.”
He appreciated the Kingdom of Saudi Arabia, France, Kazakhstan and the World Bank for the initiative, saying the world required “strong political will and global leadership to overcome the water crisis.”
“We must also focus on framework for transparency, data-sharing and regional cooperation to avoid conflicts and promote water-sharing,” the Pakistan premier said.
“We must invest in skills development, research and institutional strengthening to tackle water challenges at national and global levels.”
Sharif detailed steps taken by his government to ensure water security and climate-resilience, saying Pakistan was proud of joining this initiative and looked forward to providing all possible support in achieving its goals.
“As leaders, policymakers and custodians of the future, it is our duty to ensure that these rivers, lakes and aquifers that have nourished civilizations for centuries must not be reduced to tales of the past,” he added.
The One Water Summit is being held on Dec. 3-4 on the margins of the next high-level session of the COP16 of the United Nations Convention to Combat Desertification (UNCCD). It aims to contribute to ongoing United Nations discussions and processes to enhance global water governance, accelerate action on SDG6 on water and sanitation, and build on the momentum of the UN Water Conference in 2023.
The summit aims to scale up projects by stimulating partnerships between states, international organizations, local authorities, development and private banks, businesses, philanthropies, scientific experts, NGOs and civil society, in line with previous One Planet Summits, according to the forum’s website.
The forum will also act as an incubator for solutions in preparation for the next UN Water Conference in 2026, and integrate its agenda into the other existing water processes and initiatives such as the World Water Forum, the Dushanbe Conference and the World Water Week.
Muqeem stars as Pakistan crush Zimbabwe to win T20 series
- The 25-year-old took five consecutive wickets for the loss of only three runs
- Zimbabwe crumbled to 57 all out in 12.4 overs after making a promising start
BULAWAYO: Pakistan wrist spinner Sufiyan Muqeem starred in a series-clinching 10-wicket Twenty20 international rout of Zimbabwe in Bulawayo on Tuesday.
The 25-year-old took five consecutive wickets for the loss of only three runs as Zimbabwe crumbled to 57 all out in 12.4 overs after making a promising start.
Pakistan then sped to 61-0 off 33 balls through Saim Ayub (36) and Omair Yousuf (22) to follow up a 57-run victory last Sunday in the first of three matches.
Victory completed a white-ball double for the tourists, who won a one-day international series 2-1 last week.
Pakistan captain Salman Agha said: “Losing the toss did not concern us because we had plans and executed them really well. The bowling of Sufiyan was outstanding.
“We have a young side full of quality players and the way they are performing is very heartening for me.”
Zimbabwe skipper Sikandar Raza admitted his team were “all hurting and in a pretty bad place at the moment.
“My biggest concern is whether we are learning our lessons when we suffer defeats because we seem to be making the same mistakes match after match.”
Zimbabwe openers Brian Bennett (21) and Tadiwanashe Marumani (16) — the only batters to reach double figures — built a 37-run partnership in four overs.
Then, both fell within five balls, and the home team lost their 10 wickets for just 20 runs as Muqeem wreaked havoc.
Marumani was caught by Tayyab Tahir at cover point and Bennett by Irfan Khan at deep square leg at the Queens Sports Club.
All-rounder Raza, often the batting savior for Zimbabwe, made just three before his off stump was uprooted by Abbas Afridi.
Raza was among four bowlers who had no success trying to contain Ayub and Yousuf. The openers struck 10 boundaries, including a six each, between them.
A four from Ayub past backward point sealed victory.
Pakistan complete the T20 series against Zimbabwe on Thursday. They then travel to South Africa for an eight-match all-formats tour, including two Tests.
BBC names Pakistan's Mahrang Baloch, Hadiqa Kiani among 100 most inspiring women in 2024
- Baloch, a medical doctor and activist, has led several demonstrations against alleged enforced disappearances in Pakistan
- In response to the devastating 2022 floods in Pakistan, Kiani launched her Vaseela-e-Raah project to aid flood-affectees
ISLAMABAD: The British Broadcasting Corporation (BBC) on Tuesday named two Pakistanis, Mahrang Baloch and Hadiqa Kiani, among a list of 100 most inspiring and influential women in 2024.
Women have had to dig deep and find new levels of resilience from facing deadly conflicts and humanitarian crises in Gaza, Lebanon, Ukraine and Sudan, to witnessing the polarisation in societies that followed a record number of elections around the world, according to the broadcaster.
'BBC 100 Women' acknowledged the toll this year took on women by celebrating those who pushed for change as the world changed around them. The list also remained committed to exploring the impact of the climate emergency, highlighting climate pioneers who worked to help their communities tackle its impacts.
Baloch, a Pakistani medical doctor and political activist, was among hundreds of women across Pakistan taking part in demonstrations against alleged enforced disappearances in the southwestern Balochistan province. In late 2023, she led a 1,600-kilometer march to Islamabad to demand information on whereabouts of their family members, and was twice arrested during the journey.
"The medical doctor has since then become a prominent activist, under the banner of her own human rights group Baloch Yakjehti (Unity) Committee," the BBC wrote. "Her work in the field of human rights was recognised in the TIME100 Next 2024 list of emerging leaders."
Protesters from Pakistan's most impoverished Balochistan province, which has been the scene of a long-running insurgency, say their loved ones have been taken and killed by Pakistani security forces, amid a counterinsurgency operation. The authorities deny the accusations.
Pakistani singer and songwriter Kiani, known for her contributions to humanitarian causes, was the other Pakistani on the list. Rising to fame in the 1990s, she became a celebrated force in South Asian female pop music as well as a United Nations Development Programme (UNDP) goodwill ambassador.
"In response to the devastating 2022 floods in Pakistan, Kiani launched her Vaseela-e-Raah project, dedicated to aiding victims in the regions of Balochistan and South Punjab," the broadcaster said.
"She urged the public to assist displaced families and last year, the project announced it had built 370 homes and other facilities in the affected areas."
The BBC's list of 100 inspiring and influential women from around the world also included stranded astronaut Sunita Williams, rape survivor Gisèle Pelicot, actress Sharon Stone, Olympic athletes Rebeca Andrade and Allyson Felix, singer Raye, Nobel Peace Prize laureate Nadia Murad, visual artist Tracey Emin, climate campaigner Adenike Oladosu and writer Cristina Rivera Garza.
Pakistan stocks rally continues as market crosses record 104,000 points
- The benchmark KSE-100 index gained 1,284 points, or 1.24 percent, to close at 104,559 points on Tuesday
- The development came amid slowing annual inflation, narrowing trade deficit and increasing exports
ISLAMABAD: The Pakistan Stock Exchange (PSX) on Tuesday continued its momentum and surged by more than 1,000 points to close at another record high, with stock analysts attributing it to upbeat economic data and a possible policy rate cut.
The benchmark KSE-100 index gained 1,284 points, or 1.24 percent, to close at 104,559 points on Tuesday afternoon, compared to the previous day close of 103,274 points.
The development came as Pakistan’s annual consumer inflation slowed to 4.9 percent in November, amid a narrowing trade deficit and increasing exports.
“Upbeat data on $8.65 billion trade deficit narrowing by 7.4 percent, and $13.69bn exports, up by 12.57 percent, for Jul-Nov 2024 played a catalyst role in record surge at PSX,” Ahsan Mehanti, chief executive officer (CEO) of Arif Habib Corporation, told Arab News.
Consumer inflation cooled from 7.2 percent in October, a sharp drop from a multi-decade high of nearly 40 percent in May 2023. The South Asian country also slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.
Mehanti said the bullish trend was led by scrips across the board as investors eyed big policy rate cut next week.
The PSX breached the 100,000-mark for the first time ever on November 28 to close at 100,082 points.
Pakistan deputy PM calls for greater economic cooperation among ECO nations at Iran summit
- The ECO is an intergovernmental organization that promotes economic, technical and cultural cooperation among members
- Deputy PM Ishaq Dar expressed concern over significantly lower ECO intra-regional trade than other regional groupings
ISLAMABAD: Pakistan’s deputy prime minister and foreign minister, Ishaq Dar, on Tuesday called for greater collaboration among Economic Cooperation Organization (ECO) member states as he addressed a summit of the ECO Council of Foreign Ministers in Iran.
The ECO is a political and economic intergovernmental organization that promotes economic, technical, and cultural cooperation among member states. Founded in 1985 by Iran, Pakistan and Turkiye, the ECO aimed to succeed the Regional Cooperation for Development (RCD), which existed from 1964 to 1979.
The ECO’s objectives include contributing to the development of member states, removing trade barriers within the ECO region, developing intra-regional trade, promoting the ECO region’s integration with global markets and strengthening cultural and historical ties among member states.
Addressing the ECO summit in Mashhad, Dar said this year’s theme, “Enhanced and Resilient ECO Region Through Expansion of Intra-Regional Trade,” was a guiding principle for all that the progress and prosperity of the ECO region “hinges upon expansion of intra-regional trade.”
“It is a matter of great concern that the ECO region, comprising an area of 8 million square kilometers and half a billion population, roughly 15 percent of the world population, has intra-regional trade of unfortunately less than 8 percent of region’s aggregate and only 2 percent of the global trade,” he said.
“[This] is in stark contrast to other regional groupings such as EU [European Union], wherein the intra-regional trade stands about 70 percent and ASEAN [Association of Southeast Asian Nations], which is around 23 percent.”
During the summit, Dar signed the ECO charter on clean energy to enhance regional cooperation for transition to sustainable energy, according to the Pakistani foreign ministry.
“The charter is a flagship initiative of ECO in the energy sector which will focus on research & development for innovative renewable clean energy sources to combat climate change [and] play a bridging role in enhancing regional cooperation for smooth transition to sustainable energy,” it said in a statement.
The ECO clean energy charter would contribute to the global network of regional sustainable energy centers under the framework of the UN’s Sustainable Energy for All Initiative.
Dar also held a bilateral meeting with Iranian foreign minister Seyed Abbas Araghchi.
“During the meeting, they exchanged views on areas of mutual interest and the latest regional and global developments,” Pakistan’s state-run APP news agency reported. “Both countries agreed to deepen bilateral cooperation in all spheres.”
The meeting came weeks after Araghchi’s visit to Islamabad to hold consultations with Pakistani leaders on the Middle East situation following Israel’s invasion of Gaza and Lebanon, and to discuss bilateral ties.
Separately, the Pakistani deputy PM held meetings with ECO Secretary General Dr. Asad Majeed and Deputy Prime Minister of Kazakhstan Murat Nurtleu to discuss the latest regional and global developments, and to boost inter-regional connectivity and trade cooperation among ECO members.
