Karachi: The KSE-100 index saw a significant surge, gaining 960 points to close at 119,931, as trading volumes reached 667 million shares. The day's top performers in price change were National Bank of Pakistan (NBP), Pakistan Oilfields Limited (POML), and Attock Group of Companies (AGL). Conversely, Standard Chartered Bank Pakistan Limited (SCBPL), TRG Pakistan Limited Rights (TPLRF1), and JDW Sugar Mills Limited (JDWS) emerged as the top decliners.
Trading activity was heavily concentrated in the power, technology, and food sectors, reflecting a shift in investor interest towards these industries. This movement comes amid various economic developments, including the recent discussions between Wang and Dar on the Kashmir dispute and the China-Pakistan Economic Corridor (CPEC).
In related news, the Prime Minister has vowed strong action against the perpetrators of the recent school bus blast in Khuzdar. Meanwhile, China has facilitated an agreement between the Taliban regime and Islamabad to upgrade ties, signaling a potential shift in regional dynamics.
Economic indicators also show a complex landscape. While the International Monetary Fund (IMF) has yet to decide on Pakistan's budget relief request, the country has reported a $2.5 billion trade surplus with the United States, according to Minister Aurangzeb. However, the trade deficit with nine regional countries has widened by 35%.
On the investment front, the government has missed its target, with private sector investment remaining unchanged at around 9% despite efforts by the Special Investment Facilitation Council (SIFC). Additionally, the Federal Board of Revenue (FBR) has registered over 2 million new taxpayers, as reported to the National Assembly.
In energy developments, power generation surged by 22% in April, yet consumers might face more financial strain as Distribution Companies (Discos) seek an increase in the Fuel Cost Adjustment (FCA). The Pakistan Mercantile Exchange (PMEX) is set to launch deliverable sugar futures, while the All Pakistan Textile Mills Association (APTMA) has requested the removal of yarn and fabric from the ambit of the Export Finance Scheme (EFS).
Furthermore, the Ministry of Finance is launching a strategy to regulate digital assets, aiming to adapt to the evolving financial landscape. Meanwhile, the International Monetary Fund (IMF) has proposed doubling the duty on fertilizers, which could impact the agricultural sector.
The mixed economic signals come as the government introduces a new textile policy likely to exempt an 11% sales tax on domestic cotton, a move that has been communicated to the National Assembly.