ISLAMABAD: Pakistan’s stock market continued to extend its rally on Friday and surpassed the unprecedented 115,000-point mark before pulling back during the weekend trading session as investors locked in profits from the recent surge, analysts said.
The benchmark KSE-100 index surged by 121.30 points, or 0.11 percent, to close at 114,301.80 points from Thursday’s close of 114,180.50 points. The index hit an intraday high of 115,172.44 points after climbing 991.94 points during the weekend trading session.
Stock analysts attributed the ongoing rally to expectations of a policy rate cut by the Pakistani central bank next week.
“The monetary policy is due on Dec. 16 (Monday) and there are expectations of a sharp rate cut,” Raza Jafri, head of equities at Intermarket Securities, told Arab News. “The stock market is reacting accordingly.”
Arif Habib Corporation’s Chief Executive Officer Ahsan Mehanti said the market reached a new all-time high on Friday due to positive sentiment originating from recent growth projections and lowering inflation.
“Asian Development Bank raising growth projections to three percent and lowering inflation forecast to 10 percent for FY25 played the role of a catalyst in the record surge at PSX,” he said.
Pakistan’s annual consumer inflation also slowed to 4.9 percent in November, lower than the government’s forecast and the lowest in nearly six years. This is down from 38 percent last year.
Commenting on the market’s bullish run this week, Jafri said Pakistani companies were currently trading at a relatively low price-to-earnings ratio of six times their profits, significantly below the 10-year average of 7.5 times and the historical peak of 12 times.
Mehanti said the stocks rallied to new highs this week over Finance Minister Muhammad Aurangzeb’s assurance of achieving macroeconomic stability, apart from surging global crude oil prices.
Pakistani stocks have performed significantly well this week on the back of investor confidence regarding a possible interest rate cut by the central bank at the next monetary policy meeting. The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
According to a poll by Topline Securities, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps next week.
Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.

PESHAWAR: Pakistani authorities have postponed a planned anti-polio vaccination campaign in the northwestern Kurram district, a senior health official said on Friday, citing a fragile security situation after weeks of deadly sectarian clashes in the region.
The development came as the South Asian country reported four new cases of the polio virus that brought the nationwide tally to 63 this year. Pakistan and the neighboring Afghanistan are the only two countries in the world where polio remains an endemic.
Kurram, a former semi-autonomous tribal region bordering Afghanistan, has a long history of violent conflicts and the recent clashes between Shiite and Sunni communities, which began on Nov. 21, killed 133 people in the restive region.
Though a council of tribal elders, or jirgah, backed by the Khyber Pakhtunkhwa provincial government, this month managed a ceasefire between the warring tribes, security situation remains fragile in the district where road closures have led to shortage of medicines and food.
“Yes, the anti-polio campaign in Kurram has been postponed delayed for now. After improvement in the security environment and reopening of roads, new dates for polio eradication campaign will be announced for the district,” Dr. Qaisar Khan, the Kurram district health officer (DHO), told Arab News.
Pakistan will launch its next anti-polio vaccination campaign from Dec. 16 till Dec. 22 to reach more than 44 million children under the age of five in 143 districts across the country, according to the official.
Pakistan is a Sunni-majority country, but Kurram has a large Shiite population, and the communities have clashed for decades. Provincial authorities last Sunday dispatched a batch of essential medicines via helicopter to the volatile district to ease the suffering of residents.
Pakistan’s chief health officer said on Nov. 10 an estimated 500,000 children had missed polio vaccination during the last countrywide inoculation drive.
This year, the country’s polio program has confirmed 26 polio cases in Balochistan, 18 in Khyber Pakhtunkhwa, 17 in Sindh, and one each in Punjab and the federal capital of Islamabad.
Poliovirus, which can cause crippling paralysis particularly in young children, is incurable and remains a threat to human health as long as it has not been eradicated. Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain.
In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021.
Pakistan’s polio program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams.
In July 2019, a vaccination drive in Khyber Pakhtunkhwa was thwarted after mass panic was created by rumors that children were fainting or vomiting after being immunized.
Public health studies in Pakistan have shown that a lack of knowledge about vaccines, together with poverty and rural residency, are also factors that commonly influence whether parents vaccinate their children against polio.