The Pakistan Stock Exchange has again shown strength, and that deserves praise. The recent boost came when investors bought shares at lower prices. The comeback is being attributed to a rollover of loans by Saudi Arabia. Their confidence pushed the KSE 100 index near 168,000 points during trading.
Though the index closed a little lower at 167,085 points, this rise shows that many people still believe in the strength of our companies and the future of our economy. Clear decisions helped the market.
While the $3 billion deposit from Saudi Arabia staying in the State Bank for another year gave relief to our external sector, we can say safely that local institutions also joined hands and bought more shares, which provided a cushion. A growing number of companies are also looking to raise funds publicly.
While the PSX shines, our economy tells a more worrying story. Food prices continue to bite common people. Electricity bills leave many confused and angry. The rupee remains weak, and our exports are not growing as fast as they should. The budget deficit remains a pressing issue.
When the stock market rises, but daily life does not improve, something is not right. People want real progress, not temporary jumps. The energy sector may help lead a rally in the market next week, but without long-term economic planning, this rally may not last.
We need honest reforms in taxation, support for small businesses, and cheaper energy. Growth on the exchange should reach the streets, not stay only on trading screens.aaa
The PSX may be rising, and that is welcome. But the planners must remember that markets alone do not fix economies. True development comes when people see relief, savings grow, and jobs appear. *