Pakistan’s lockdown gamble appears to have paid off

Pakistan’s stock exchange isn’t typically seen as one of the world’s best, but in recent weeks it has outperformed almost every other rival market. In terms of weekly profit, the Pakistan stock market was among the world’s top-performing last week. In August, it was Asia’s best and the fourth-best globally. For many, this has been a surprising turnaround in a country that registered a nine-year low growth rate only 12 months ago. Not to mention that the Pakistan stock exchange crashed with much of the rest of the global market when Covid-19 hit in March. So what explains Pakistan’s success?

It is no coincidence that the stock market highs have come in light of Pakistan transforming into a rare and perhaps unlikely Covid-19 success story, having largely curtailed the spread of the virus in a region still reeling with the impact of the pandemic. But while Pakistan’s apparent triumph over Covid-19 still remains a healthcare mystery, the roots of the stock market’s rally are more discernible.