Karachi: The KSE-100 Index soared by 1,290 points, closing at 169,865, with an impressive trading volume of 872 million shares. Notable gains were recorded by Nishat Mills Limited (NML), Kot Addu Power Company (KAPCO), and Cherat Cement Company Limited (CHCC), while Pakistan Gold Corporation (PGLC), Service Industries Limited (SRVI), and JDW Sugar Mills Limited (JVDC) experienced declines. The trading activity was predominantly focused in the Technology, Power, and Investment Companies sectors.
The State Bank of Pakistan is expected to maintain the interest rate at 11 percent amidst concerns raised by the International Monetary Fund (IMF) about potential inflation risks. The IMF has also highlighted discrepancies in import data and projected that the investment-to-GDP ratio might fall below 13 percent.
In response to the IMF's recommendations, the government is contemplating a hike in the petroleum levy to Rs85 per liter to address a Rs1.7 trillion gas debt. This comes as petroleum prices are anticipated to decrease by up to Rs12 per liter, which could provide some relief to consumers.
Prime Minister Shehbaz Sharif has expressed optimism about the economy, stating that it is "out of the woods," with key indicators showing promising performance. However, the IMF has projected a significant increase in domestic debt by Rs4.5 trillion and gross external financing needs at USD 19.398 billion.
Despite the positive outlook from the Prime Minister, the textile sector is facing challenges, with reports of layoffs and shutdowns as export growth slows. The Finance Ministry has clarified that the targets set by the IMF are part of phased reforms rather than new conditions, as Pakistan continues to work towards meeting its economic benchmarks.
In the pharmaceutical sector, the Drug Regulatory Authority of Pakistan (Drap) is set to review the prices of 400 top-selling medicines following their deregulation. Meanwhile, circular debt issues are reportedly hindering a $1 billion investment in a gas field project, underscoring the ongoing challenges in Pakistan's energy sector.
The government is also set to allow Binance to explore the tokenization of up to $2 billion of assets, signaling a move towards embracing digital currencies. However, all sectors, not just textiles, are being urged to contribute to boosting exports, as emphasized by government officials.