Karachi: The KSE-100 Index experienced a significant downturn, shedding 3,856 points to close at 116,167. A total of 592 million shares were traded. The biggest gains in terms of price change were observed in BNWM, FHAM, and TPLRF1, while YOUW, PAEL, and TRG were the top decliners. The trading activity was mainly concentrated in sectors like Technology, Investment Companies, and Cements.
In other developments, political headlines dominated with the announcement of an Iran-Israel ceasefire by former U.S. President Donald Trump. Meanwhile, India extended airspace restrictions for an additional month. The closure of the Strait of Hormuz has been flagged as a significant risk to Pakistan's economy.
Power purchase prices have been set at Rs25.98 per unit for the upcoming fiscal year, representing a 3.77% decrease. Pakistan is also in negotiations to secure two loans totaling $3.3 billion from Chinese institutions.
Finance Minister Aurangzeb introduced measures to mitigate the impact of financial relief provided to the salaried class. The government presented charged expenditures amounting to Rs28.77 billion while assuring the public there is no need for panic or rationing in the petroleum sector.
Further actions include the Privatization Commission’s plan to appoint financial advisors for more Discos to evaluate their sell-off potential. Additionally, the Petroleum Division blocked an FCA relief of Rs4.69 per unit, while the government aims to recover Rs1.938 trillion from power consumers over the next six years.
Port Qasim has reduced charges by 50% for exporters, and a levy on furnace oil is expected to decrease local demand and boost exports. The withholding tax on the sale of 15-year self-owned homes will cease from July 1.
Meanwhile, oil dealers have accused firms of withholding supply, and the Sugar Advisory Board approved the import of 0.5 million tons of sugar. Textile exports have declined for the second consecutive month, and Finance Minister Aurangzeb informed the National Assembly that sales tax and duty exemptions on imported cotton and yarn are being revoked. Oil prices have also fallen by 6%.