There is no denhying that stock business is actually directly related to the country's conditions, it keeps having positive and negative effects on the market.

Last week, the 100 index of the Pakistan Stock Exchange reached 63,000 after a zero-decimal 57% decline due to the Iran-Pakistan tension.ÿIn view of restoration of relations between the two countries and a positive economic and political scenario in the near future, the benchmark SE 100 index regained the 64,000 mark after an increase of 514 points or 0.81 percent on Tuesday.ÿ

The buying of financial institutions boosted the stock market.ÿ26 crore 11 lakh 12 thousand 921 shares worth 21 billion 25 crore 69 lakh 27 thousand 967 rupees were transacted.ÿThe investment value increased by 51 billion 58 crore 9 lakh rupees. Business volume increased by 42.52%.ÿShares of 354 companies were traded in the market.ÿThe share price of 209 companies increased, 127 decreased and the share price of 18 remained stable.ÿ

Last year too, there was a major downturn in the market in the shadow of the political atmosphere, but after six and a half years, the index reached the highest level of 65 thousand points at one point.ÿA positive trend was also seen in the Pakistan Stock Market on Wednesday morning and the KSE 100 index increased by 511.85 points, which is a good omen.  Opportunities will increase.ÿFor readers' interest, according to Bloomberg, the US is currently the world's largest stock market with an m-cap of $50.86 trillion.ÿShanghai is second with $8.44 trillion and Tokyo stock market is third with $6.36 trillion.ÿ The Indian stock market has moved to the fourth position, before Hong Kong was at the fourth position. Due to the investment agreements of billions of dollars in various sectors by the United Arab Emirates, a huge boom took place in the Pakistan Stock Exchange last month, which broke all previous records of the 100 index and for the first time in the history of the country, the index reached the milestone of 61 thousand points.  It has been crossed, which has increased by 20,830 points this year. On Tuesday too, the index reached 60,730 points. 63% share prices had increased while the value of shares increased by 98 billion 10 crore 14 lakh 24 thousand rupees.

The total amount of capital has become 87 trillion 46 billion 11 crore 45 lakh rupees. More boom was seen in the banking sector. Traditionally the sector has been a favorite for foreign investment, with cement, energy and fertilizers also seeing big purchases. Experts say that the forecast of the index reaching the level of 75 thousand points with a growth of 30% by December is proving to be encouraging for the market. The morale of the capitalists is rising as the news of financing of one and a half billion dollars expected from multi-donors is circulating which is driving the market graph towards higher. Expectations of receiving the second tranche under the IMF program, positive news like reduction in interest rates and better political situation are also reasons for the increase. Around the world when stock market points increase, the resources obtained from it are used for economic development and setting up industries etc. Is it not possible for us that the government should ensure the use of capital that is rapidly gained in the stock market for growing new crops and setting up industries so that the country can stand on its feet economically.  Unfortunately, the stock market has started to be considered as a reason for speculation and profiteering. And that aspect needs to be taken care of.

The analysts attribute the boom at Pakistan Stock Exchange to business friendly environment in the country right now. In fact, Actions by the caretaker government, IMF's confidence in Pakistan and chances of finalizing policy-level talks, expectations of receiving $700 million from the IMF by December and $25 billion in Pakistan from a major UAE firm are good news.  And it is due to this positive development that the stock exchange is touching new heights and is setting new records. The PSX  has reached this level gradually and in the month of November, its Hundred index crossed the psychological threshold of 56 thousand points setting a new record in the Pakistan Stock Exchange on the first day of the business week after the investment news of  foreign firms in Pakistan. Yes, in the first week of November, the total volume of capital in the market increased to 80 trillion 82 billion 2 crore 67 lakh, 66 crore 6 lakh 49 thousand shares worth 22 billion rupees were traded.  The investors were on cloud nine when theysaid that the 100 index closed at 55,391 points on the last day of the last business week.  The stock market hitting all-time highs is a sign that potential profit-taking is encouraged and the positive trend continues.  And now crossing a new high of 61,000 after an increase of 1132.22 points has increased the chances of a fresh move. In early November, after the date of general elections was agreed between the President and the Chief Election Commissioner, the index in the Pakistan Stock Exchange crossed the limit of 53 thousand points after 6 and a half years and since then this increase has been seen continuously, but the question that is also whether the stock market will be able to sustain this bullish trend.  However, many an analyst believe that Pakistan is in the IMF program and has no choice but structural reforms, moderation in oil prices, gradual restoration of imports and dividends and tight fiscal policy, but capital from the high interest rate bargain stock market can shy away investors which can be detrimental to stock exchange trading and share businesses.

The fact that the government is trying hard to overcome the economic crisis cannot be ignored. Special attention is being given to increasing investment, reducing the gap between imports and exports, reducing the trade deficit, completely eliminating all forms of corruption and removing all kinds of obstacles in the way of business, resulting in a gradual improvement in the economic situation.

The signs have started to appear.  Thanks to the government's initiatives, the fiscal deficit has been limited to 0.8 percent of the gross national product in the first four months of the current financial year.  Revenues have increased and primary surplus is improving due to reduction in non-interest expenses.

According to the data of the Ministry of Finance, in the first four months of this financial year, the financial deficit has been recorded at 861.7 billion rupees, which was 1265.8 billion rupees in the same period of the previous financial year.

The total federal revenue from July to October is 2806.6 billion rupees which was 1316.8 billion rupees in the same period last year.

Published in The Daily National Courier, January, 27 2024

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