Karachi: The KSE-100 Index experienced a notable surge, gaining 447 points to close at 138,412, with a substantial volume of 424 million shares traded. The market's performance was led by significant price changes in SYS, BWCL, and TPLRF1, while GHGL, BNWM, and IBFL saw the most declines. The trading activity was primarily concentrated in the technology, banking, and cement sectors.
In related financial news, oil prices continued to rise amid concerns over supply disruptions due to tariff threats from former U.S. President Donald Trump. Meanwhile, the United States has reached an agreement to tap into Pakistan's oil reserves, a move that could have significant implications for the region's energy dynamics.
The State Bank of Pakistan (SBP) opted to keep its policy rate unchanged, a decision that surprised many financial experts. Despite this, the economic outlook remains positive, with the central bank projecting foreign exchange reserves to surpass $17 billion by the end of the fiscal year 2026.
In other economic developments, there is potential relief for consumers as petrol prices may decrease by up to Rs10. However, the government has scrapped duty relief on the import of 479 items, which may affect certain sectors.
Interest from China in Pakistan's energy-related industries continues to grow, as a Chinese team expressed keen interest in exploring opportunities. The Tariff and Customs Evaluation Board (TCEB) has approved strategic tariff and policy measures, and discussions are underway for industrial loans and development strategies.
The Pakistani rupee continues its upward trend amid a crackdown on illegal currency exchanges. Additionally, the National Electric Power Regulatory Authority (NEPRA) is considering a proposal to reduce tariffs by Rs0.65 per unit.
Pakistan's export market shows promising growth, with exports to Afghanistan increasing by 38.68%, reaching $773.892 million in the fiscal year 2024-25. In a move to foster digital commerce, the 5% tax on digital goods and services supplied from abroad has been withdrawn.
Despite these positive indicators, the power sector's circular debt remains a concern, hitting the Rs1.6 trillion mark. The government is also taking steps towards technological advancement, as the cabinet approved the National AI Policy 2025.
Discussions are ongoing about forming joint ventures between Pakistan and Russia in the pharmaceutical sector. Meanwhile, government officials have been granted authority to seize cigarettes without Federal Board of Revenue (FBR) stamps or those with counterfeit stamps.
In the automotive sector, Honda Atlas Cars has launched Pakistan's first Honda HR-V e, marking a significant development in the country's vehicle market.