The Role Of Pakistan Stock Exchange – OpEd
By Dr. Sahibzada Muhammad Usman
Stock exchanges, in the world of economic dynamics, are used as a thermometer. The control the temperature of risks and the actual position of the sol entity of the country. The Pakistan Stock Exchange (PSX) remains the critical player in the complex line-up of geopolitics, economic policies, and global market conditions, thus providing a continual demonstration of resilience and endurance under the trying circumstances of political turbulence.
Capital, which is called the lifeblood of economic activity, always have a unique and extraordinary position in production process. Search engine algorithms possess market sensitive functions that they can perceive any movement in the market irrespective of its upward or downward movement, thus, they act decisively to respond immediately. Considering the economic outlook for the Pakistani market, the stock market turbulence act as a vein of the future direction elaborating the level of safety and calmness for the country.
The PSX’ opinion during the last few months has been a positive one and the move is due to the damages that the market has taken so far. The advance in the index is clearly reflecting the market’s resistance to a downturn and the possibility of further growth. Nevertheless, this happy moment did not take long as the mixed dynamics kicked in caused by political instability which followed the uncertainties of being the next government after the harmonized general elections.
Political turmoil, whatever the reasons may be, broadly echoed on the stock market and led to slump reaching 60 thousand points. The breath of fresh air started to blow into the situation where the main sticky issues were within the reach of resolution such as the formation of government and the activations of parliaments at different levels. Moreover, the increased RMB debt financing of two billion dollars by the Chinese increased their market vigor. It acted as a positive impulse, rebuilding the market confidence of investors.
Latest events have, however, managed to revive the breathtaking trend in Kunga Mutuma’ perspective. Within the natural gas and oil drilling industries, a notable increase in activities has been registered. This frenzy of traders exchanges the shares of 51.6% of Hundred Index every day to bring its daily price speculation by 875 points which makes the total investment value of 83 billion, 30 crores and 67 lakhs. The closing level of the High Index at 64.578 was a 15-point rally when compared to the earlier day’s trading. The local currency appreciated exponentially at the interdealer horizon which created a positive mood around the whole financial market.
Consequently, this dilemma clearly brings out the central role of political stability in promoting economic wellbeing. In order for a consolidated effort to be achieved, political leadership and officials should cooperate in dealing with the unrest and guarantee the safeguarding of the constitution and the democracy as the vital conditions for accelerated economic growth of a country. Through determined actions to be taken, GDP curve of Pakistan if imparting a robust ascent which makes a decent future.
For sustainability of economic growth, policy makers are critical, in that they must maintain a conducive environment of economic prosperity. Hence, policymakers of Pakistan, in view of the most recent events on Stock Exchange, need to give priority to the measures through which they will be able to make the political system stable and the confidence of investors to enhance and development of effective regulatory system. Through the taking and solution of crucial issues and this way the building of a good environment for investors and startups, policymakers can assist greatly in the economic recovery in particular.
Eventually, despite the political uncertainties and their shadows, the Pakistan Stock Exchange stands out as a symbol of resilience and shows a set of uncommon abilities to go through the challenges which in the long run give the Pakistan Stock Exchange its winners mark. The fact that the mentioned trend is not just indicative of the self-regulating capacity of the economy but also of the nation’s realization and unity in the pursuit of well-being is even more significant. Trading as a cohesive unit on a common objective, i.e. stability and prosperity, everyone or the whole country will trust in the Pakistan Stock Exchange, thereby, presenting the most outstanding reason to the stock market. On the other hand, with good policies, conscientious leadership, and a robust market support mechanism, Pakistan would be able to achieve economic potential and, thereafter, revise long-term growth and development agendum.
