Major growth expected in Pakistan’s stocks as economic stability returns

KARACHI: Bloomberg has predicted a strong growth of 27 per cent for Pakistan’s stock market by the end of next year, driven by stabilising economic conditions and a steady rupee, which gained nearly 4 percent since the start of 2024.

In its analysis, Bloomberg pointed out that Pakistan’s stocks could see an increase of over a quarter in value, supported by signs of economic recovery and a more stable rupee.

According to data from the magazine, the KSE-100 Index is currently the second-best performer globally, highlighting its recent strength.

The country’s economy has gradually stabilised, with inflation easing from record highs. This has allowed the central bank to lower interest rates over four consecutive meetings, bringing them down to 15 per cent—the lowest in two years.

Bloomberg cited analysts who think that Pakistan’s stock market may be “set for a potential re-rating” due to favourable factors like reduced interest rates, currency stability and improving macroeconomic trends.

The publication also noted increased interest from foreign investors in Pakistan’s debt and equity markets, which analysts say could further boost the stock market’s upward trend.

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