In 2024, the Pakistan Stock Exchange (PSX) has shown remarkable resilience, with the KSE-100 index surging by 83% in PKR and 85% in USD terms year-to-date. This growth is attributed to several factors, including macroeconomic stability under the IMF program, high liquidity, and a relative political stability that has encouraged investment [8770db25]. The PSX experienced a significant increase in Initial Public Offerings (IPOs), with seven companies raising Rs8.4 billion (approximately $30 million), marking a substantial rise from just one IPO in 2023 [8770db25]. Notable IPOs included Secure Logistics Group Ltd, TPL REIT Fund I, International Packaging Films Ltd, Fast Cables Ltd, and BF Biosciences Ltd, indicating a renewed interest in the market [8770db25].
Earlier in November 2024, the KSE-100 index had gained 281.55 points to close at 98,079.78, reflecting a positive shift in market sentiment despite ongoing political uncertainty in Pakistan [8580d775]. The total shares traded during that day were 640,258,528, with a total share price value of Rs25.623 billion, down from Rs45.475 billion, showing a decrease in trading volume [8580d775].
The resurgence in IPO activity is particularly noteworthy against the backdrop of a global decline in IPOs, where only 870 IPOs raised $78 billion in 2024 [8770db25]. This trend suggests that while the global market faces challenges, Pakistan's economic indicators are improving, attracting more companies to consider entering the market in 2025 [8770db25].
The approval of the Extended Fund Facility (EFF) by the International Monetary Fund (IMF) has been pivotal in reducing uncertainty and improving foreign exchange reserves, further bolstering investor confidence [db82e241]. Despite these positive trends, challenges such as high inflation and currency depreciation continue to loom over the economy, necessitating ongoing reforms [8770db25]. Finance Minister Muhammad Aurangzeb has emphasized the need for fundamental economic reforms to ensure that the latest IMF agreement is the last, highlighting the importance of a stable economic environment for sustainable growth [db82e241].