Karachi: The KSE-100 index experienced a significant downturn, shedding 719 points to close at 118,971, with a trading volume of 437 million shares. The market activity was primarily concentrated in the food, cement, and textile sectors. While POML, PABC, and BNWM saw notable price gains, KTML, AGL, and TPLRF1 were among the top decliners.

In other economic developments, the Chief of Army Staff has been elevated to the rank of field marshal for his role in the Marka-i-Haq operation. This comes as an International Monetary Fund official visits amid ongoing budget talks, highlighting the country's fiscal challenges.

Pakistan's economy posted a 2.4 percent growth in the third quarter of FY25. However, the government is preparing to impose a General Sales Tax on petroleum products and increase the petroleum levy, which may further strain the economy.

The new tariff policy is raising concerns among manufacturers, with auto parts makers expressing discontent. Meanwhile, luxury items are expected to attract more sales tax in the upcoming budget.

The World Bank has deferred an additional $70 million in IDA credit for the Pakistan Railways Rehabilitation project. Additionally, a carbon levy of 50 per liter on petroleum products is likely to be introduced.

Efforts are underway to implement IT reforms to prevent a talent exodus, as the Central Development Working Party has approved projects worth Rs21.83 billion. However, the government has failed to sell three inefficient power plants, raising concerns about missing growth projections for FY25.

Pakistan remains hopeful of securing $350 million in loans from UAE banks, while the government pledges tax relief for refineries in the FY26 budget. Refineries have agreed to a $6 billion upgrade plan.

The Oil and Gas Regulatory Authority has proposed a gas price hike for the northern region, with relief for the south, reflecting ongoing adjustments in the energy sector.