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Corporate profitability has jumped to PKR 210 billion during July-September (Q3) 2020 according to sources which shows an increase of around 39 percent as compared to the same period last year. This is also the highest quarterly increase in any year with quarter on quarter growth of 52 percent being recorded in Q3 2020.
The head of research at Arif Habib Ltd says, “As the economy gradually transitioned into a recovery phase after the initial Covid-19 outbreak, earnings of companies that comprise KSE-100 index showed a record performance.”
The companies in the KSE-100 index showed aggregate earnings of PKR 479 billion in the first three-quarters of 2020 as compared to 2019 which is an increase of around 3.9 percent. Considering that the economy faced a major crisis as COVID-19 forced industries to closed worldwide, these are very promising statistics.
Good governmental policies and subsidies have allowed the industry to flourish during these times. That is why the exports have also reached Pre-Covid levels of $2 billion per month. As the rupee continues to grow stronger and the foreign direct investment is increasing month by month, all signs point toward a growing economy. Pakistan’s trade deficit is also decreased by 15 percent as compared to last year. If the industry continues to flourish like this, Pakistan could have a very stable economy.
Image Source: Inc.
