Stock market participants surge as investor and business confidence improves

Investor and business confidence in Pakistan has improved considerably after the economy showed signs of recovery following stringent reform measures introduced by the present government, leading to an increase in the number of participants at the local bourse.

In a televised address on Tuesday, Finance Minister Muhammad Aurangzeb stated that 52,000 new investors have been added to the Pakistan Stock Exchange, signaling improved confidence in the country's economic affairs.

He further mentioned that seven new companies have been listed on the stock market through Initial Public Offerings (IPOs). In comparison, the average number of new companies listed over the last ten years has been just four per year.

Another significant element highlighted by the finance minister was the continuous support from overseas Pakistanis, who have been sending their hard-earned money back home.

The remittances for February crossed the $3 billion mark and, over the first eight months of the current fiscal year, recorded a growth of 33% to $24 billion.

The minister expressed hope that by the end of the current fiscal year, remittances would reach around $36 billion.

The average monthly remittances for the past eight months have been $3 billion, compared to $2.5 billion in the fiscal year 2023-24.

In the last quarter, surveys conducted by the State Bank of Pakistan and PricewaterhouseCoopers (PwC) indicated that business confidence has improved during this period.

The finance minister also highlighted that the Federal Board of Revenue (FBR) implemented a system for monitoring the movement of sugar, including a track and trace system, video monitoring, and the stamping of bags to track the movement of sugar from mills to wholesalers.

Due to strict monitoring, several individuals have been held responsible at the sugar mills. A number of them have been penalized, and some mills have been sealed due to the theft of sales tax.

In the first two months of 2025, net sales tax collection from the sugar industry has been around PKR 24 billion ($85 million), an increase of more than 50%.

He mentioned that monitoring efforts extend beyond sugar mills, with strict measures taken at the borders as well, under the directives of the Prime Minister.

The smuggling of sugar has been curbed with the help of government agencies, and this season the country has exported sugar to Afghanistan.

The minister added that sugar production is expected to reach 5.7 million tons during the current season. With ample stocks of sugar from the previous season, the stocks are sufficient to meet domestic consumption.