FPCCI’s presidential candidate, Atif Ikram Sheikh, said on Sunday that the Pakistan stock market is performing very well, which indicates improved confidence in the economy of the business community. The stock market is outperforming the stock markets of many countries due to the confidence reposed by the IMF in Pakistan’s economy, which has been handled well in the past few months, he said.
Atif Ikram Sheikh, who has also served as VP FPCCI, Chairman PVMA, and President ICCI, said in a statement issued here today that the crucial IMF package, commitment and action for fiscal discipline, and high corporate profits helped investors earn far higher returns than from investing in regional exchanges. He added that investors who put their money in the Pakistan Stock Exchange just five months ago would have seen investments grow on average by per cent, compared with a 3 to 5 per cent growth in regional stock markets.
The business leader said that the performance of the KSE-100 over the last few months has been remarkable, and it closely coincides with several significant developments, including a deal with the IMF, foreign exchange-related agreements with Saudi Arabia and the UAE, and a corporate rebound.
The data also shows that the stock market rally in Pakistan is driven by companies operating in the manufacturing and industrial sectors and those catering to the consumption economy, such as carmakers, he informed.
Atif Ikram Sheikh said this optimism in the stock market was buoyed by reports saying that Saudi Arabia and the UAE were releasing $2 billion and $1 billion, respectively, so Islamabad could shore up foreign exchange reserves.
Mitchell’s Fruit Farms saw its stock price rise 142 percent over the year ending 29 November 2023. Similarly, the stock price of apparel seller Image Pakistan jumped 60 per cent over the same period. Three auto companies, Honda Atlas Cars, Ghandhara Industries, and Hinopak Motors, were also among the top gainers during the last year.
On the manufacturing and industrial side, companies like Baluchistan Wheels, Leiner Pak Gelatine, National Silk & Rayon Mills, Kohinoor Power, and Macpac Films were among the top gainers.
However, he said, the consensus still seems to be that the Pakistani economy is still in some tough times, with the October 2023 update of the IMF’s World Economic Outlook predicting a 0.5 per cent contraction in GDP in 2023 and 2.5 per cent growth.