In a remarkable display of market optimism, the Pakistan Stock Exchange (PSX) witnessed a significant surge on Wednesday, with shares gaining over 600 points. This bullish momentum was largely attributed to advancements in the privatization process of Pakistan International Airlines (PIA), a development that injected fresh enthusiasm into investors.
The federal cabinet’s approval of the board of PIA Holding Company, with the appointment of Tariq Bajwa as chairman, underscored a pivotal step in the privatization journey. The decision to transfer PIA’s assets and liabilities to the holding company, slated for registration with the Securities and Exchange Commission of Pakistan, ignited hopes for a revamped and competitive aviation sector.
The benchmark KSE-100 index soared by an impressive 663.71 points, nearing the previous all-time high set in December, as market sentiment surged on the heels of PIA’s progress. Investors found reassurance in the positive macroeconomic outlook, buoyed by potential agreements with the International Monetary Fund (IMF) and foreign fund investments supporting share prices.
Noteworthy was the finance minister’s statements emphasizing expenditure reduction and the prospect of an improved credit rating, which resonated positively with market participants. Despite concerns over record high interest rates and their potential impact on sectors like textiles, investor optimism remained resilient.
