The Pakistan Stock Exchange (PSX) surged more than 700 points on Wednesday, propelling the benchmark KSE-100 index beyond 80,000 owing to increased investor interest in state-owned businesses (SOEs).
The benchmark KSE-100 touched 80,292.59 points intraday, up 739.71 points or 0.93% from the prior close of 79,552.89 points.
According to EFG Hermes Pakistan CEO Raza Jafri, the increase was driven by a surge in purchasing in state-owned enterprises (SOEs) such as the National Bank of Pakistan (NBP) and the Oil and Gas Development Company (OGDC), with news reports indicating a push for privatization, strategic share sales, and legacy difficulties.
This comes with rising expectations of significant interest rate decreases in [the second half of 2024] and prompt admission into an International Monetary Fund (IMF) programme, he noted.
The government’s privatization plan would be implemented over the next two to three years, according to Finance Minister Muhammad Aurangzeb, after the National Assembly approved the FY25 budget last week.
Minister for Privatization Aleem Khan has stated that the federal government wants to privatize around 24 state-owned enterprises (SOEs) in the coming years, with Pakistan International Airlines slated to be the first.