Stocks surge amid economic optimism

Pakistan's stock market on Thursday enjoyed a highly positive activity, during which the KSE-100 index touched an all-time high of 94,290 points in intra-day trading. According to analysts, the interest of investors could be attributed to the growing economic optimism, fuelled by reports that the International Monetary Fund (IMF) had no concerns about Pakistan's revenue collection targets. As a result, fears of an imminent mini-budget and new taxation measures eased. Moreover, Pakistani banks secured a temporary relief from the Islamabad High Court against a government tax linked to the shortfall in private sector lending, adding to investor interest in the market. Ahsan Mehanti of Arif Habib Corp commented "stocks were at a new all-time high, led by blue chips on a strong earnings outlook." Rupee stability, receding fears of a mini-budget and the government's assurance to the IMF about bridging the $5 billion external funding gap through a deferred Saudi oil payment facility and loan rollover by China Exim Bank played the role of catalysts in bullish close at the PSX, he added.