Pakistan Strategy: Strategy 2025 - Choosing the Right Direction Towards Stability – By IIS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">&ldquo;The haystack is golden, but it&rsquo;s the needle that will shine.&rdquo; This sentiment captures the current state of Pakistan&rsquo;s equity market. After a remarkable 70% CY24TD run-up in the KSE-100 Index, Pakistan&rsquo;s equity market has undoubtedly rewarded investors handsomely. However, with the market now trading at a forward P/E multiple of 5.4x still below its historical average of 8x, selective opportunities remain. The broad undervaluation narrative is fading as prices adjust, but specific sectors continue to offer compelling value. Cyclical sectors like cement, steel, and autos may benefit further from economic momentum, while defensive plays with robust dividend yields remain attractive for yield-seeking investors. The c...