On Friday, the Pakistan Stock Exchange (PSX) surged over 1,800 points after October’s inflation data supported expectations of a rate cut by the State Bank of Pakistan (SBP) in its upcoming November 4 meeting. The KSE-100 Index rose by 1,893.09 points, closing at 90,859.85, driven by optimism around the 7.2% year-on-year inflation rate for October, which beat forecasts and marked a significant drop from 26.8% in October 2023.
Analyst Ahsan Mehanti noted that the low inflation and increased foreign reserves—up to $11.156 billion with IMF assistance—fueled speculation of a rate cut, likely up to 200 basis points, aiming to ease borrowing costs and stimulate economic activity. Pakistan’s inflation has steadily decreased, averaging 8.7% for FY2025’s first four months, down from 28.5% in the same period last year.
