The Pakistan Stock Exchange (PSX) in Islamabad has been hitting all-time highs in recent months, with the benchmark KSE-100 index reaching a record high of 45,723 points on October 15th. This is a remarkable achievement for the Pakistani stock market, which has been on a steady upward trajectory since the start of the year.
The PSX has been buoyed by strong economic growth in the country, with the International Monetary Fund (IMF) predicting that the country’s GDP will grow by 3.7% in 2020. This is a welcome change from the past few years, when the country’s economy was in a state of decline.
The strength of the Pakistani stock market is also due to the government’s efforts to promote the growth of the capital markets in the country. The government has implemented a number of reforms, such as the introduction of the Real-Time Gross Settlement (RTGS) system and the introduction of the Pakistan Investment Bonds (PIBs). These measures have helped to improve the liquidity of the market, making it easier for investors to buy and sell shares.
The PSX has also been boosted by the launch of the Pakistan Mercantile Exchange (PMEX), which is the country’s first commodity futures exchange. The exchange has provided investors with an alternative investment avenue, allowing them to diversify their portfolios and hedge against market risk.
The strong performance of the PSX has been further supported by the government’s efforts to attract foreign investors. The government has implemented a number of measures to make it easier for foreign investors to invest in the country, such as the introduction of the Foreign Investment Promotion Board (FIPB) and the liberalization of the foreign exchange regime.
Overall, the performance of the PSX is a testament to the strength of the Pakistani economy. The government’s efforts to promote the growth of the capital markets in the country have been instrumental in driving the stock market to new heights. With the economy expected to continue to grow in the coming years, the PSX is likely to remain on an upward trajectory.