Karachi: The KSE-100 index witnessed a slight uptick on Tuesday, closing with a gain of 47 points at 118,430, as trading volumes reached 740 million shares. The market's performance was led by improvements in FCEPL, AGP, and HMB, while PGLC, BOP, and PIBTL recorded declines. Trading activity was predominantly seen in the banking, cement, and food sectors.
In a separate development, the International Monetary Fund (IMF) revised the country's GDP growth forecast downward, citing increased financial stability risks amid ongoing trade tensions. The IMF highlighted the growing challenges in the global economic environment, emphasizing the potential exacerbation of trade conflicts.
Adding to the financial discourse, Fitch Ratings projected the Pakistani rupee to weaken further, estimating it to reach 285 against the US dollar by June and 295 by the end of fiscal year 2026. This forecast comes as the IMF continues to monitor countries like Pakistan, which have engaged in repeated financial assistance programs.
Domestically, the government is reportedly considering increasing imports from the United States, aiming to balance trade disparities. The untapped potential of Pakistan's mineral resources is seen as a possible solution to this trade imbalance.
In the energy sector, Pakistan faces logistical challenges with 800 oil tankers stranded due to ongoing protests, raising alarms about possible petroleum shortages in the provinces of Punjab and Sindh. Meanwhile, efforts are underway to reform the taxation and energy sectors, along with state-owned enterprises.
Pakistan and Turkiye have reaffirmed their commitment to strengthening bilateral relations, while trade ties with Bangladesh are also set to expand. In a significant development, Pakistan and China are enhancing digital cooperation, focusing on advancements in 5G technology, artificial intelligence, and data centers.
Additionally, the Pakistani government has pledged to ensure a stable gas supply to fertilizer plants, while PAKOXY has entered a 15-year hydrogen supply agreement with Archroma Pakistan Ltd, marking a notable development in the energy sector.