Karachi: The KSE-100 Index witnessed a robust gain, climbing 496 points to close at 159,593 in yesterday’s trading session with a volume of 768 million shares. This upward movement came as top performers in terms of price change were listed as Attock Refinery Limited (ATRL), HFCL Grameena Finance (HGFA), and Pakistan Tobacco Company Limited (PAKT). Conversely, major decliners included Pakistan State Oil (PSEL), Kohinoor Textile Mills Limited (KTML), and TRG Pakistan Limited. Trading activity was primarily concentrated in Investment Companies, Banking, and Technology sectors.
Meanwhile, Finance Minister Khawaja Asif reported no advancement in ongoing discussions with the Afghan regime, highlighting a stalemate in diplomatic efforts. In legislative developments, a joint parliamentary body approved the 27th Amendment Bill, marking a significant step in constitutional amendments.
The government is currently on standby for approval from the International Monetary Fund (IMF) to announce its first industrial policy. Additionally, the first quarter of the fiscal year 2026 saw the country record a budget surplus of Rs2.1 trillion, indicating fiscal restraint and management.
Despite these fiscal achievements, industrial stakeholders have rejected the Prime Minister's proposed power package, signaling potential challenges for energy policy. On a positive note, remittances have surged by 9.3 percent year-on-year, reaching USD13 billion, while weekly SPI inflation decreased by 0.59 percent.
Economic indicators reveal mixed signals as the tax-to-GDP ratio has entered double-digit territory due to a boost in direct tax collection. However, the power division seeks a 23 percent reduction in sector allocation amidst a daunting Rs23 trillion circular debt.
The trade deficit with the Middle East has narrowed in the first quarter, providing some relief to the country's external balance. In financial maneuvers, the government plans to borrow $1 billion aimed at economic reforms, though domestic private investment has halved in the past six years, posing long-term concerns.
Local sales tax collection remains a focus, with the petroleum sector leading in customs duty due to import reliance. The Economic Coordination Committee has approved gas supply to three fertilizer plants, while the auto industry prepares for an impending policy dispute.
Lastly, congestion at ports has been exacerbated by delays in sugar cargo, and the auto-parts sector faces a yearly cost of up to Rs60 billion due to the import of used cars. In energy-related developments, the Central Power Purchasing Agency-Guarantee (CPPA-G) has been directed to pay Rs89.5 billion to the Oil and Gas Development Company Limited (OGDCL) concerning Uch power firms.