Strong Foreign Investment in Pakistan Stock Exchange During Fiscal Year 2024
In Karachi, the Pakistan Stock Market saw robust foreign investment during the fiscal year FY24, driven by improving economic indicators, the successful implementation of the IMF Standby Agreement, and stability in the currency.
Foreign corporations emerged as net buyers in FY24, recording inflows of $152 billion, marking the highest level of investment in eight years. This contrasts with the previous fiscal year FY23, where foreign corporations were net sellers, offloading shares worth $67.392 million.
Overall, net foreign portfolio investment (FIPI) in the Pakistan Stock Market rose to $140.771 million during FY2023-24, compared to a modest inflow of $1.569 million in the preceding fiscal year FY2022-23. In the first six months of the current calendar year alone, foreign corporations remained net buyers, acquiring shares worth $77.669 million from January 01 to June 28, 2024, contributing to a net FIPI inflow of $69.759 million during this period.
Muhammad Sohail, CEO of Topline Securities and a leading analyst, attributed the increased foreign investor confidence to improved economic indicators, successful IMF Standby Agreement implementation, timely negotiations for a new IMF program, and currency stability amid significant dollar inflows.
The Pakistan Stock Exchange emerged as the top-performing stock market globally in US Dollar terms, delivering net returns of 95 percent, and the second-best performer in Pakistani Rupee terms, with net returns of 89 percent during FY24. This performance underscores strong interest from both foreign and local investors.
Top of Form
Bottom of Form
