The Pakistan stock market may reach close to 50,000 points if the general elections run smoothly and the International Monetary Fund approves the next tranche of financial assistance in November, according to brokerage firm Topline Securities. The market is currently at around 46,000 points due to uncertainty about Pakistan’s economy and a lack of investment from partners. However, the announcement of the election date for January 2024 has given the market a boost. The delay in the election was caused by the new census and delimitation process. The upcoming election, the value of the Pakistani Rupee, and the IMF review in November are expected to be important factors affecting the market in the short term. The brokerage firm also noted that previous elections have seen a positive rally in the stock market in the months leading up to the elections. They believe a stable currency and recent steps taken by the State Bank of Pakistan and law enforcement agencies could help the local equities market perform well before the elections. The current price-to-earnings ratio for Pakistani equities is considered cheap, and a successful and peaceful election could improve investor confidence. The KSE-100 Index, which measures market performance, has not reached the 50,000-point mark since June 2017, but the recent IMF approval temporarily pushed it close to 49,000 points.

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