2024

Exchange

Tax

Cars

PSX predicted to cross 100,000 level in 2025


PSX closes in green

KARACHI: Arif Habib Limited (AHL), a leading brokerage house, has forecasted a substantial 36 per cent return for the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index, projecting it to reach 109,250 points by June 2025. This optimistic outlook is detailed in AHL’s latest Pakistan Strategy report.

The anticipated growth is driven by several factors, including potential negotiations for the International Monetary Fund’s Extended Fund Facility (EFF) programme, an expected reduction in the policy rate, and a significant shift of investments from fixed income securities to equities.

These elements are likely to contribute to a re-rating of the index, enhancing its performance, the report noted.

AHL projects a 3.2 per cent growth in Pakistan’s Gross Domestic Product (GDP) for the fiscal year 2025 (FY25), supported by improved agricultural yields, recoveries in industrial output, and expansion in the services sector.

According to Mettis Global, the report also highlights Pakistan’s anticipated entry into a new three to four-year EFF programme with the IMF, estimated to be worth between $6 billion and $8 billion. Additionally, inflation is expected to average around 10.7 per cent during FY25.

Furthermore, the report projects Pakistan’s current account deficit (CAD) to reach $2.6 billion in FY25, attributed to a rebound in import-led demand. The Pakistani Rupee is forecasted to average approximately 289 per USD in the same period.

AHL’s comprehensive analysis indicates a positive economic trajectory for Pakistan, contingent upon key financial and structural reforms.

Read next: Global oil prices decline following surge to multi-month highs

You May Also Like