The Pakistan Stock Exchange (PSX) saw a significant rebound on Friday as investor confidence surged following the resolution of political uncertainty with the court’s verdict in the £190 million case involving former Prime Minister Imran Khan and his wife, Bushra Bibi.
The benchmark KSE-100 Index gained 1,435.34 points (1.26%) to close at 115,272.08, marking a notable recovery.
“This rally reflects relief over the court’s decision, which ends weeks of political ambiguity,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He added that Pakistan’s current account surplus further boosted investor confidence, signaling the government’s adherence to the IMF program.
The much-anticipated verdict by Accountability Court Judge Nasir Javed Rana sentenced Khan to 14 years and his wife to 7 years in prison, accompanied by substantial fines. The judgment, while politically impactful, provided clarity that calmed market concerns.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, highlighted that better-than-expected balance of payment data also played a key role in improving market sentiment.
The State Bank of Pakistan (SBP) reported a $2 billion rollover in UAE deposits, confirmed by Prime Minister Shehbaz Sharif after discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan.
Pakistan’s foreign exchange reserves increased by $30 million to $11.725 billion for the week ending January 10, supported by a $944 million current account surplus in the first five months of FY25. This contrasts sharply with the $1.67 billion deficit during the same period last year. Additionally, workers’ remittances grew by 33%, reaching $17.8 billion compared to $13.4 billion a year ago.
The government continues efforts to stabilize the economy, including plans to issue yuan-denominated Panda bonds expected to raise $200-$250 million from Chinese investors by the end of the fiscal year. Finance Minister Muhammad Aurangzeb expressed confidence in meeting IMF bailout conditions and highlighted improvements in Pakistan’s sovereign credit ratings.
