KARACHI -UNS: The rapid positive trend in the Pakistan Stock Exchange, is because of decreased in the price of electricity by the government.
The Pakistani Stock Market has a positive trend despite the downturn in the global stock market.
Global stock markets plummeted further on Friday after China said it would strike back at US President Donald Trump with additional tariffs of 34% on US goods, escalating a trade war that has rattled investors and fed fears of a coming recession.
The trade war has spurred the biggest market losses since the pandemic.President Donald Trump’s latest tariffs hikes upend global trade and world markets.
According to analysts, the reduction of electricity prices for domestic and industrial consumers is good news for the Pakistani economy, which has a positive impact on the stock exchange.
According to analyst Nabil Haroon, the main reason for Pakistan’s improvement is the announcement of a reduction in power tariffs, which is good for the economy.
He said that the price for the industry was also reduced which is likely to increase the growth in industrial and agriculture production..
He said that in the same way, inflation was released and on a monthly basis, the trade deficit was expected by the government to announce the termination of circular debts in the energy sector in five years.
Decrease in power is main factors supported the increase in business activities in the Pakistan stock market.
Analyst Gibran Sarfraz said that the reduction of electricity prices in the country promoted the stock exchange activities, and the reduction in inflation in March is also a positive development for the economy, which promoted a positive trend in the business.
Pakistan economy have a great potential to improve and foreign investors.Pakistani GDP can be improve over 6 percent in near future if government sustained policies.
