Standard and Poor’s Global Marketing Intelligence anticipated repeated cuts in the State Bank of Pakistan’s policy rate in the current fiscal year on falling inflation, which hit a 44-month low of 6.9pc in September. Before the end of December, another 200bps cut was anticipated. However, it projected that the IMF-driven tax policies and high energy prices driving up manufacturing costs would keep average inflation in the double digits.
Ahsan Mehanti of Arif Habib Corporation noted that the positive closing was also influenced by the S&P’s prediction of a fourth consecutive rate drop of 200bps, an increase in gasoline sales in September, and a spike in global oil prices amid escalating Middle East tensions.
