KARACHI: The Pakistan Stock Exchange (PSX) on Monday hit a new all-time high of 69,620 points, equity analysts said, attributing it to hopes of the Saudi crown prince’s visit to Pakistan and investment in the Reko Diq gold mine project.
The benchmark KSE100 index crossed the psychological barrier of 69,000 points by gaining 1,203 points, or 1.76 percent, which is highest increase after January 01, 2024.
It followed Prime Minister Shehbaz Sharif’s visit to Saudi Arabia where he met with Crown Prince Mohammed bin Salman and other officials.
This was the Pakistani prime minister’s first foreign trip since forming a coalition government in February this year.
“The basic reason of continuation of the bullish market is the recent visit of PM to Saudi Arabia, where he held an important meeting with the crown prince and the Saudi interest in Pakistan is clear, particularly $1 billion investment in Reko Diq project,” Sheheryar Butt, portfolio manager at Karachi-based Darson Securities, told Arab News.
Although there has been no official confirmation of it, Pakistani media reports have suggested the Kingdom is interested in investing about $1 billion in the Reko Diq gold and copper mine located in Pakistan’s southwestern Balochistan province.
One of the largest undeveloped copper-gold projects in the world, Reko Diq is owned 50 percent by Canada-based Barrick Gold Corporation, 25 percent by three federal state-owned enterprises, 15 percent by Balochistan on a fully funded basis, and 10 percent by Balochistan on a free carried basis, according to Barrick.
Butt said the market stakeholders were also expecting that the Saudi crown prince might visit Pakistan after Eid Al-Fitr, which boosted investor confidence.
“It is very much likely that the Saudi Crown Prince may visit Pakistan after Eid, following the Pakistan prime minister’s Saudi tour,” he said.
Market sentiments, according to Butt, were also buoyed by foreign investment in equity and money market, while inflows of financial results of companies also played a key role in the bullish close.
Samiullah Tariq, director at Pakistan Kuwait Investment Company, believed the bullish trend also resulted from hopes of a new International Monetary Fund (IMF) loan program.
“Apart from PM’s Saudi visit which is expected to materialize some investment deals, the optimism at the IMF front is also propelling the stocks to new highs,” Tariq told Arab News.
The South Asian nation is formulating a proposal to present to the IMF for a more extensive loan program, with an anticipated size of $7-9 billion. This follows a staff-level agreement between Pakistan and the IMF on the final review of a $3 billion Stand-By Arrangement (SBA), paving the way for the release of $1.1 billion by the lender this month.
Ali Nawaz, CEO of Chase Securities, said the bullish trend could be attributed to a combination of factors, including positive economic news flow like the IMF agreement, which had instilled confidence in investors.
“Additionally, increased buying from both local and foreign investors has driven up stock prices due to higher demand,” he said.
Nawaz, however, was uncertain about the sustainability of the current rally.
“Global economic conditions and the continuation of positive domestic reforms will play a significant role in determining the PSX’s future performance,” he added.
The stock market confidence was also boosted by the appreciation of the Pakistan’s currency which continues to stabilize against United States (US) dollar.
The greenback has come down to around Rs280 since the Pakistani authorities took serious actions against dollar smuggling and hoarding.
The US dollar is currently trading at around Rs277 for buying and Rs279 for selling in the open market, according to Exchange Companies Association of Pakistan (ECAP). It is trading at Rs277.95 in the interbank market.
“The strict action taken by the country’s army chief against smuggling of dollars to Afghanistan and hoarding and manipulation of currency by certain banks is yielding results,” Malik Bostan, the ECAP chairman, told Arab News.
Bostan said exporters were coming in large numbers to convert their proceeds in local currency due to fear of further depreciation of greenback.
“We expect that the currency would further appreciate against dollar and may stabilize around Rs250 in the interbank and open markets,” he added.
Hopes of Saudi crown prince’s visit, Reko Diq investment propel Pakistan stocks to new all-time high
https://arab.news/n3jaw
Hopes of Saudi crown prince’s visit, Reko Diq investment propel Pakistan stocks to new all-time high
- The benchmark index recorded its highest-ever closing at 69,620 points, after gaining 1,203 points on Monday
- Analysts say optimism on IMF front, foreign investment in government securities also drove bullish sentiment
Pakistan parliament approves bills to extend tenure of services chiefs to five years
- Extension in services of army, navy and air force chiefs follows controversial amendments to the constitution last month
- The opposition PTI party condemns the amendments for changing Pakistan “from a democracy into a monarchy”
ISLAMABAD: Pakistan’s National Assembly and Senate on Monday approved bills to extend the tenure of the army, navy, and air force chiefs from three to five years, amid protests by the opposition benches.
The office of the army chief is considered to be the most powerful in the country, with the army having ruled Pakistan for almost half of its 75-year history. Even when not directly in power, the army is considered to be the invisible guiding hand in politics and holds considerable sway in internal security, foreign policy, and economic affairs, among other domains.
Six bills were passed by the upper and lower houses on Monday evening, including one to increase the term of the services chiefs.
“In the said Act, in section 8A, in sub-section (1), for the expression “three (03)” the word “five (05)” shall be substituted,” read the bill, seeking to amend the Pakistan Army Act, 1952.
Similar bills were passed to increase the duration of the country’s naval and air force chiefs to five years also.
“The purpose of these amendments are to make consistent the Pakistan Army Act, 1952 (XXXIX of 1952) The Pakistan Navy Ordinance, 1961 (Ordinance No. XXXV of 1961) and The Pakistan Air Force Act, 1953 (VI of 1953) with the maximum tenure of the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff and to make consequential amendments for uniformity in the aforementioned laws.”
Speaking outside parliament, the chairman of the opposition PTI party, Gohar Ali Khan, said:
“Today, democracy has been changed into a monarchy.”
Leader of the Opposition in the National Assembly, Omar Ayub Khan, said “modifying the service chiefs’ tenure is not a good thing for the country and the armed forces.”
The passage of the new bills follows controversial amendments made to the constitution last month, granting lawmakers the authority to nominate the chief justice of Pakistan, who previously used to be automatically appointed according to the principle of seniority.
The amendments allowed the government to bypass the senior-most judge of the Supreme Court, Justice Mansoor Ali Shah, and appoint Justice Yahya Afridi as the country’s top judge, replacing former chief justice Qazi Faez Isa.
The opposition and the legal fraternity had opposed the amendments, arguing that they were aimed at granting more power to the executive in making judicial appointments and curtailing the independence of the judiciary. The government denies this.
Pakistani forces kill six militants in shootouts near border with Afghanistan — military
- Pakistan’s Khyber Pakhtunkhwa province, which borders Afghanistan, has witnessed a number of attacks recently
- Pakistan blames the surge in militancy on militants operating out of Afghanistan, Kabul denies the allegations
ISLAMABAD: Pakistani security forces have killed six militants in two separate engagements in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Monday.
A militant was killed in an exchange of fire during an intelligence-based operation in North Waziristan’s Dosali area, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
In the second incident, Pakistani forces intercepted a group of militants while infiltrating the country’s border with Afghanistan in the South Waziristan district. Five militants were killed as a result.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the ISPR said in a statement.
“Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij [militants] for perpetuating acts of terrorism against Pakistan.”
Khyber Pakhtunkhwa, which borders Afghanistan, has witnessed a number of attacks by the Tehreek-e-Taliban Pakistan (TTP) and other militant groups that targeted security forces convoys and check posts, besides targeted killings and kidnappings of law enforcers and government officials in recent months.
Pakistan has frequently accused neighboring Afghanistan of sheltering and supporting militant groups, urging the Taliban administration in Kabul to prevent its territory from being used by armed factions to launch cross-border attacks.
Afghan officials, however, deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.
Pakistan Navy test-fires ship-launched ballistic missile ranging 350 kilometers
- The missile is capable of striking land and sea targets with ‘high precision’
- Pakistan, India consider their missile programs as deterrent against each other
KARACHI: Pakistan Navy has successfully test-fired a ship-launched ballistic missile having a range of 350 km and capable of striking both land and sea targets, it said on Monday.
Pakistan sees its missile development as a deterrent against nuclear-armed arch-foe India. Both countries have fought multiple wars since their independence from Britain in 1947.
The two South Asian neighbors have long been developing missiles of varying ranges in a bid to ensure deterrence against possible attacks from each other, with analysts often warning these developments could push the region into an arms race.
“Pakistan Navy conducted a successful flight test of an indigenously developed ship-launched ballistic missile,” the Directorate General of Public Relations (DGPR) of Pakistan Navy said in a statement.
“The weapon system with 350km range is capable of engaging land and sea targets with high precision.”
https://www.youtube.com/watch?v=ikldB3jieWo
The flight test of the weapon system, equipped with a state-of-the-art navigation system and maneuverability features, was witnessed by Chief of Naval Staff Admiral Naveed Ashraf, senior naval officers, scientists and engineers.
President Asif Ali Zardari, Prime Minister Shehbaz Sharif, Chairman Joint Chiefs of Staff Committee General Sahir Shamshad Mirza, Chief of Army Staff General Asim Munir and Chief of Air Staff Air Marshal Zaheer Ahmad Babar Sidhu congratulated the participating navy units and scientists on the development.
Qatar investment team due in Pakistan this month, PM Sharif says after Doha visit
- The statement comes days after Sharif visited Qatar seeking to bolster economic cooperation between both nations
- Before arriving in Doha, Sharif attended the Future Investment Initiative in Riyadh and met the Saudi Crown Prince
ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday a team of the Qatar Investment Authority (QIA) will visit Pakistan this month to set up an information technology (IT) park in the South Asian country.
The statement came days after Sharif visited Qatar while seeking to bolster economic cooperation amid Pakistan’s efforts to boost foreign investment to stabilize its frail $350 billion economy.
Before arriving in Doha, Sharif attended the Future Investment Initiative in Riyadh, Saudi Arabia, where he discussed trade and investment with Saudi Crown Prince Mohammed bin Salman.
Speaking at a meeting of his cabinet, Sharif said a QIA team will visit Pakistan this month, while its chief of Asia-Pacific & Africa Investments, Faisal Bin Thani Al Thani, will also arrive in Islamabad by the end of this month.
“Qatar emir said the same thing. They also suggested setting up an IT park here [in Pakistan],” Sharif told his cabinet members in televised comments.
During his visit, Sharif led delegation-level talks with the Qatari emir before holding a separate meeting with him to discuss a wide array of issues.
“The leaders reviewed the entire spectrum of Pakistan-Qatar relations, exploring potential avenues for enhanced cooperation in trade, potential areas of investment, energy, and culture,” Sharif’s office said last week.
He also met a delegation of the Qatar Businessmen Association (QBA) and invited them to invest in Pakistan’s energy, infrastructure and technology sectors.
The developments came amid Pakistan’s attempts to increase trade and foreign investment after it narrowly escaped a default last year by securing a last-gasp $3 billion financial assistance package from the International Monetary Fund (IMF).
The South Asian country has since sought to promote closer economic ties with regional and international allies to bolster its fragile economy, which has been suffering from a prolonged macroeconomic crisis.
Pakistan central bank cuts key rate by 250 bps to 15%
- Monday’s move follows cuts of 150 bps in June, 100 in July and 200 in September
- It takes the total policy rate cuts in the country to 700 bps in under five months
KARACHI: Pakistan’s central bank cut its key policy rate by 250 basis points to 15 percent on Monday, it said in a statement, for a fourth straight reduction since June, as the country keeps up efforts to revive a sluggish economy with inflation easing.
Most respondents in a Reuters poll last week expected a cut of 200 bps after inflation moved down sharply from a multi-decade high of nearly 40 percent in May 2023, saying reductions were needed to bolster growth.
Average consumer price index inflation in the South Asian country is 8.7 percent in the current financial year, which started in July, the statistics bureau says. The International Monetary Fund (IMF) expects inflation to average 9.5 percent for the year ending June.
Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.
October inflation came in at 7.2 percent, slightly above the government’s expectation of 6 percent to 7 percent. The finance ministry expects inflation to slow further to 5.5 percent to 6.5 percent in November.
However, inflation could pick up again in 2025, driven by electricity and gas price increases after a new $7-billion IMF bailout, and the potential impact of taxes on the retail, wholesale and the farm sector announced in the June budget to take effect in January 2025, some analysts say.
