Karachi: The Karachi Stock Exchange's benchmark KSE-100 index declined by 48 points to close at 79,944 yesterday. The trading session saw 431 million shares change hands. The performance leaders included Fauji Fertilizer Bin Qasim Limited (FFBL), Habib Bank Limited (HBL), and Murree Brewery (MUREB), while the top decliners were PGLC, TRG Pakistan Ltd, and Bannu Woollen Mills (BNWM). Sectors such as technology, fertilizer, and power witnessed the most activity.
According to Turus Securities Limited, Pakistan's financial landscape saw a mix of developments beyond the stock market. The country has secured a new $7 billion Extended Fund Facility (EFF) from the International Monetary Fund (IMF), aiming to stabilize its macroeconomic situation. However, concerns remain as the Finance Minister Aurangzeb predicts a sharp depreciation of the rupee following the deal. The Federal Board of Revenue (FBR) also fell short of its Rs9.4 trillion tax collection target, despite high food prices contributing to short-term inflation spikes.
The government's economic measures included raising residential electricity rates by up to 51% and approving an 11% increase in the electricity tariff by the National Electric Power Regulatory Authority (NEPRA). Amid these financial adjustments, the FBR is set to expand its retailer tax scheme to 42 cities and aims to enforce a new farm income tax that could generate Rs1.5 trillion. The commercial sector showed signs of unrest with cement dealers and flour millers announcing strikes over high taxes and other financial pressures.
As Pakistan navigates these economic challenges, industries such as cotton and refining are also facing difficulties. The refineries have delayed $5 billion in investments due to a tax exemption dispute, and cotton prices remain low amid a grim market outlook. Meanwhile, the Pakistan State Oil (PSO) board has allocated up to $3 million for a market study, and the government has decided against a legal approach for Pakistan Telecommunication Company Limited (PTCL) dues collections.