It was only in 2016 that Pakistan Stock Exchange (PSX) was declared as the best performing exchange until recently in September 2020. To be regarded as one of the best performing exchanges is not an easy feat and therefore caution should be exercised as the stock exchange in Pakistan moves further into the calendar year.
Pakistan Stock Exchange Market: Good news
This year has not been exactly a kind one in terms of economy and health, both. These sectors have been shattered by the global blow delivered by coronavirus. And this pandemic can be thought of as nature’s unprecedented move that came at an unexpected time. The country’s shrinking economy has definitely seen halcyon days in past but amid all this crisis, it’s a good news to see the plummeting numbers going back up.
Effort in ruins
For a country that has been engaged in war on multiple fronts and levels, keeping the economy on right track is a more than difficult job. Economic crisis, external debt, and rising foreign threats are some of the factors. Which have been haunting Pakistan’s growth for some past decades.
Even ingenious methods of bringing the economy back from ruins were of no use because of indirect influence of tyrannical neighbors. Though thanks to strategically planned actions. Now the results are evident in the form of rising numbers and improved security conditions but need for better still remains.
Global recognition
A global market research firm based out of New York, regarded Pakistan’s stock exchange as fourth best performing in the world. After the yield fell below double digits on the state’s bond, a hefty 38.5% return in terms of Dollar as foreign capital was recorded by the PSX benchmark KSE-100 index.
Amidst all this chaos, this news and ranking pertinent to the stock market has been regarded as a breeze of relief by economists all over Pakistan. Some even highlighted this news as an indication of the country’s economy going in right direction towards recovery.
Infection rate control
One of the most exciting reasons can also be an unexpected. And amazing success in the case of coronavirus cases in Pakistan. Pakistan has been regarded as a bright hotspot by many world health authorities. As infection spread is well below under 5% yet the exact cause is unknown.
The reasons
Some regard Pakistan’s high ratio of young population as the reason. While epidemiologist state saturation of social circles as one of the valid reasons. Even some experts have discredited the idea of second wave. Because they believe that already most of the population has contracted the virus and recovered asymptomatically. No matter what the reason, it can’t be anything short of an economic and health sector miracle for Pakistan. A country that is so challenged financially can’t fight pandemic on its own so it’s for the better.
Economic stimulus package for the construction as well as industrial sectors. It is also mentioned as means to help Pakistan crawl its way back up the economic ladder. A combination of both these factors is what can be depicted now in the form of numbers in global reports.
Experts have now estimated this recovery as a more noticeable one even better than the one in 2016. This is because of the sustainable steps that have been taken. And are hoping for things to go up the hill. The financial pundits who have a keen eye on the matter. It may have pointed towards areas where improvement is required and if suitable actions are taken then chances of better figures and improved rankings remains.
So this is all about Pakistan Stock Exchange being regarded as the best performing in Asia’s market. If you still have any questions, you can contact us right away. We’ll be more than happy to help you out.
