The macroeconomic indicators are signalling a continued positive outlook for Pakistan’s economy. Lower global oil prices and lower food prices will keep in check any increase in inflation beyond 7%.

The first quarter GDP growth figure of 3.71% is quite heartening and if all goes well, GDP growth for the year may accelerate to 4%. The stock market has provided phenomenal returns in last three years but we anticipate that market will further rerate to a higher P/E multiple as we see more progress on privatisation and structural reforms. The reforms in energy chain will keep the entire sector vibrant as many stocks are still trading at lower multiples.