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Pakistan’s Stock Market Records Gain as National Assembly Holds Maiden Sitting

The stock market in Pakistan experienced a significant increase on Thursday, with the benchmark KSE100 index closing at the 64,579 level, marking a gain of 1.3 percent. This growth comes after the National Assembly of Pakistan held its maiden session following the controversial elections held earlier this month, which has somewhat reduced political uncertainty in the country.

Political parties in Pakistan have been protesting against the results of the February 8 national polls, claiming that they were heavily rigged. However, the recent convening of the National Assembly has boosted investor confidence in the market, as it suggests that a new democratic government will soon be in place.

The president’s decision to summon the National Assembly session for the government’s formation has helped ease political noise, according to Ahsan Mehanti, the CEO of Arif Habib Corporation.

The Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) parties have announced their plans to form a coalition government at the center, as they have the required number of seats to do so. They have also secured the support of smaller parties in the assembly and have named former premier Shehbaz Sharif as their candidate for prime minister.

Sheheryar Butt, a portfolio manager at Darson Securities, a Pakistani securities brokerage company, highlighted that the market’s bullish trend from Wednesday has continued, as people anticipate the PML-N forming the next government. He also noted that the PML-N’s manifesto aligns with the plans of the International Monetary Fund (IMF), which the new government will have to negotiate with. This alignment is favorably viewed by investors.

The new government’s key task will be securing a long-term bailout program from the IMF, as the country’s short-term program is expiring next month. Pakistan’s economy, valued at $350 billion, is in dire need of external financing to bolster its foreign exchange reserves and address its economic crisis.

To ensure economic stability, the market expects the PML-N to follow in the footsteps of the caretaker government and implement the necessary measures. Butt expressed confidence that Pakistan will secure the final tranche from the IMF under the $3 billion short-term financing agreement reached last summer.

The election of the prime minister is scheduled to take place on March 3, and elections for the speaker and deputy speaker’s positions are set for Friday, March 1.

Source: [Arab News](https://www.arabnews.com)