Infostani Sources- Share buying activity at discounted prices, driven by positive economic sentiments, propelled the Pakistan Stock Exchange on Thursday. The index surpassed the historic milestone of 58,500 points for the first time in the country’s history. Experiencing a remarkable surge of 58% in share prices. This significant increase, along with IMF predictions of a 30% index growth to reach 75,000 points by December 2024. Also, an expected interest rate cut to 15%, is seen as a further boost to the market. As a result of this boom, the value of shares increased by a staggering 86 billion 10 crore 92 lakh 65 thousand 177 rupees.
KSE 100 Records Gain; Dollar Sees Marginal Increase, Gold Prices Drop
At the end of the business day, the KSE 100 index recorded a closing of 58899.84 points, marking a gain of 701.08 points. Despite predictions and assurances that the dollar’s value would gradually rise in the third year under the IMF agreement, factors such as the absence of new inflows from friendly countries and external creditors led to a limited increase in the dollar’s value in the interbank market on Thursday. This marginal uptick persisted until the close of business after a five-day hiatus. In contrast, the open rate of the dollar dropped to the level of 286 rupees.
Money market sources suggest that the IMF’s earlier forecasts anticipated the average value of the dollar to remain low at 300 rupees this year. Prior to the staff-level agreement, the IMF had projected the average dollar value to exceed 300 rupees. As the business day concluded, the interbank rate of the dollar experienced a sudden 14 paise increase, closing at 285 rupees 26 paise.
In contrast, the value of the dollar in the open currency market declined by 50 paise, reaching 286 rupees. Additionally, the price of 24-carat gold per tola saw a reduction of Rs 600, settling at Rs 215,850, while the price of gold per 10 grams dropped by Rs 557 to Rs 185,057 in local bullion markets on Thursday.
Caretaker Finance Minister Stresses IMF Program Implementation and Economic Reforms
Dr. Shamshad Akhtar, the Caretaker Finance Minister, emphasized the full implementation of the IMF program, projecting a 2.5 percent growth rate for the current fiscal year. She highlighted improvements in the forex market through reforms and stressed the necessity of structural reforms for a robust economy. Efforts are underway to alleviate the debt burden, and despite challenges, the caretaker government consistently inked staff-level agreements with the IMF. Government companies incurred losses exceeding five billion rupees, prompting measures to mitigate the debt burden. Dr. Shamshad Akhtar addressed these issues at the annual conference on sustainable development.
China’s $2.4 billion debt was postponed; focusing on self-sufficiency to address economic challenges. Plans to increase exports, list profitable state-owned companies on the stock market and shift their management to the private sector. The tax to GDP rate is set to rise from 9% to 15%. With a separation between tax policy and collection. Government-owned companies face losses of 500 billion rupees. Will also be monitored by the central unit of the Ministry of Finance. A sovereign fund has been created for profitable companies.
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