Karachi: The KSE-100 Index recorded a gain of 173 points, closing at 139,380, with a trading volume of 588 million shares. The market activity was predominantly focused on the Engineering, Technology, and Banking sectors. Leading the day's price performance were Atlas Honda Limited (ATLH), Habib General Insurance (HGFA), and Sazgar Engineering Works Limited (SAZEW). Conversely, Allied Bank Limited (ABL), Bank Alfalah Limited (BAFL), and Pakistan Services Limited (PSEL) were among the top decliners.
In other economic developments, Finance Minister Aurangzeb is heading to the United States to finalize crucial trade negotiations. The Finance Ministry has forecasted a growth rate of 4.2 percent for the fiscal year 2026. Meanwhile, the Prime Minister has urged provinces, as well as Azad Jammu and Kashmir and Gilgit Baltistan, to collaborate in promoting a cashless economy.
The Federal Board of Revenue has eased the cap for deferred sales tax refunds, while banks have raised concerns over government efforts to strengthen the rupee. The Pakistan Business Forum has recommended reducing both interest and exchange rates. Although economic recovery is ongoing, the Finance Ministry warns that recent rains could pose a threat.
Critics have labeled the budget as lacking essential reforms and overburdening the formal sector. The State Bank of Pakistan faces pressure due to inflation forecasts. Reduced reliance on imported gas for power generation has resulted in the closure of 400 mmcf gas fields.
The government is taking measures to ensure a steady supply of sugar mill stocks. The All Pakistan Textile Mills Association is calling for a 200 basis point cut in policy rates. Meanwhile, 29 Oil Marketing Companies have been digitalized as part of an overhaul in the oil supply chain.
The Oil and Gas Regulatory Authority has granted Cnergyico permission to export 40,000 tonnes of furnace oil. Additionally, the Minister has instructed Ogra to reassess the revenue requirements of gas firms.
In industrial news, Sazgar Engineering is set to launch the Pakistan-assembled HAVAL H6 PHEV in August. Agritech Limited has resumed operations at its Urea Plant following the resolution of a technical issue.