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Pakistan Stock Market boom: Pakistan, which is burdened with debt and is facing economic ruin, is battling a financial crisis on one hand, while on the other hand its stock market is skyrocketing. Pakistan's stock market has increased by 100 percent in the last one year. This increase is more than five times the increase recorded in Indian stock exchanges.
In the last one year, the Indian stock market has grown by 20 to 25 percent. Nifty is up 25 percent in one year, while Sensex is up 21 percent. While Pakistan's Karachi Stock Exchange has grown by 100 percent. Pakistan's top index FTSE Pakistan also registered a jump of 100 percent. However, in terms of market cap, Pakistan's stock market is nowhere near India.
Not even in top 100 exchanges of Pakistan
In terms of market cap, Indian stock exchange is among the top-5 stock exchanges in the world. Currently, its market cap is more than Rs. 435 lakh crore. Whereas Pakistan's stock exchange is not even in the top-100. Among the top stock exchanges in terms of market cap, America's New York Stock Exchange is at first place, Tokyo Stock Exchange is at second place, London Stock Exchange is at third place, National Stock Exchange is at fourth place and Hong Kong Stock Exchange is at fifth place.
Blind rise in Pakistan's stock market
Pakistan's stock market has been witnessing a tremendous rise for the last one week. The Karachi 100 index was at the level of 40000 in the last one year. Which has now increased to cross the level of 80 thousand. The FTSE Pakistan index has crossed the level of 1100 points with a jump of 100 percent. Due to this attractive rise, the number and attraction of investors in the Pakistani stock market is constantly increasing. Experts say that this rise is being recorded due to the signs of improvement in the economic condition of Pakistan.
Reasons behind the surge in Pakistan stock market
Recently, the budget was presented in Pakistan. This time the size of the budget is around Pakistani rupees 18.88 lakh crore, which is 30.56 percent more than last year. From the second day of the budget presentation, the Pakistani stock market is witnessing a rise. Finance Minister Muhammad Aurangzeb said in the budget speech that the government is preparing to hand over government enterprises to private hands.
The Pakistan government may focus on privatization next year to improve the country's economic condition. Also, the measures taken in the budget seem to make it easier for Pakistan to take loans from the International Monetary Fund (IMF). Due to this, the confidence of the stock market has increased and investors are investing with hope.
Pakistan is under pressure due to the conditions of taking loan from IMF. Pakistan's Finance Minister Muhammad Aurangzeb was under pressure to increase taxes and revenue collection. To get a bailout package from IMF, Pakistan government has set a target of 3.6 percent economic growth during the next financial year. Pakistan's growth rate in the current financial year was 2.38 percent.
