Pakistan Stock Market Hits Record High After Power Tariff Cut

Pakistan’s stock market went through the roof today, hitting its highest level ever after the government announced big cuts in electricity prices. The KSE-100 index – which tracks the country’s top companies – shot up by over 1,100 points to close at 118,938, after reaching as high as 119,179 during the day.

The excitement started when Prime Minister Shehbaz Sharif told the nation that electricity would become much cheaper – about Rs7 less per unit for homes and factories. For regular households, this means power bills could drop from around Rs41 to Rs34 per unit. Business owners got even better news with their rates coming down by nearly Rs8 per unit.

“This is exactly what our economy needed,” said market expert Ali Farid while talking to our reporter. “When businesses pay less for electricity, they can produce more and create jobs. And families will have more money left after paying bills.”

The price cuts didn’t happen overnight. The government had been working with NEPRA (the power regulator) and even got approval from the IMF, which is helping Pakistan with a $7 billion loan program.

Just last Friday, the stock market had barely moved, gaining only 34 points. But today’s record-breaking jump shows how much investors liked the electricity news.

While everyone’s celebrating, some financial experts are whispering words of caution. “Markets can be moody,” warned economist Sara Nizami. “If global oil prices go up or the rupee loses value, we might see some pullback.”

For now though, business owners and stock investors are all smiles. As factory owner Rizwan Ahmed put it: “Lower electricity costs mean I can finally think about expanding my textile business. This could be the start of better days for Pakistan’s economy.”

The government says this is just the beginning of their plan to boost the economy. All eyes will now be on next month’s budget to see what other relief measures might be coming.