Pakistan Benchmark Index Crosses 74,000 Points for the first time in History

Pakistan's benchmark share index touched a lifetime high on Monday, breaching the key level of 74,000 points, and was trading up 1.3 percent. The index has surged 79.1 percent over the past year and is up 14.49 percent in the year to date. Last month it completed a short-term $3 billion International Monetary Fund (IMF) loan program, which helped stave off sovereign default, but the government has stressed the need for a fresh, longer-term program.

An IMF mission led by its chief will meet with authorities in Pakistan this week to discuss a new program ahead of Islamabad beginning its annual budget-making process for the next financial year, the IMF resident representative for Pakistan said on Saturday.

Amreen Soorani, head of research at JS Global Capital, said stock market valuations were recovering as talks with the IMF and reforms progressed, and foreign investors showed interest. She said slowing inflation had also helped the rally.

Pakistan's consumer price inflation slowed to 17.3 percent in April from a year earlier, the lowest reading in nearly two years and below the finance ministry's projections. The country has struggled with inflation above 20 percent since May 2022. Inflation jumped as high as 38 percent in May 2023 as Pakistan navigated reforms as part of an IMF bailout program.

"Corporate profits are strong. The market's (price-earning) multiple is still only around 4, which is well below the historical average of 6, including the distressed times in this average," she added. On Friday, Pakistan's benchmark share index closed at a record high of 73,085 points, above the key level of 73,000 for the first time.