The rise and rise of the KSE-100

Ammar H. Khan

Article Type

Article

Description

The KSE-100 index of Pakistan's stock market has seen significant growth, providing a 150% return over the last 18 months, despite political and economic volatility. This growth has largely covered inflation over the last several years. However, Pakistan's economy remains highly dependent on government support, with eight of the top 10 listed companies reliant on government relationships for income or benefits. The lack of economic diversification and reliance on imports and consumption-based growth has limited long-term market sustainability. While liquidity has improved due to lower interest rates, the market remains shallow, and significant reforms are necessary to transition to a more market-driven economy. The competitive nature of businesses will only improve once the economy shifts toward investment and export-oriented growth.

Publication Source

DAWN

Publication Date

12-2-2024

Pages

1

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