The KSE100 index in Pakistan hit a record high of 53,263.07 points on Friday, the highest it has been since May 2017. This surge was propelled by the announcement of the general election slated for February 8 and the anticipation of an International Monetary Fund (IMF) loan tranche release.
The election commission spokesman's declaration of the upcoming elections has fostered a sense of political stability and reduced economic uncertainty as the nation anticipates the formation of a new government. A caretaker government, installed in mid-August, will remain in place until the election results are announced.
The market opened at 52,917 points under this caretaker government, which was established following the approval of a $3 billion IMF loan in July to prevent a potential sovereign debt default. This loan approval has led to over 30% growth in the index this year.
Despite these positive indicators and significant corporate profitability growth, economic challenges persist. Weak exports, high debt interest payments, low economic growth, and managing foreign exchange reserves continue to pose hurdles.
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