Karachi: In a significant turnaround for the Pakistani stock market, the KSE-100 Index soared by 1,591 points, closing at an impressive 163,848. This dramatic rise saw a massive trading volume of 1,282 million shares. Key performers included AIRLINK, FABL, and POML, while stocks such as NPL, UPFL, and THALL faced declines. The surge in activity was prominently observed in the technology, food, and banking sectors.
In a notable development, former U.S. President Donald Trump revealed that Israeli Prime Minister Benjamin Netanyahu has agreed to a U.S.-backed peace plan for Gaza. Trump expressed gratitude towards Pakistan's Prime Minister and Chief of Army Staff for their support in facilitating the agreement. Meanwhile, Netanyahu has issued an apology to Qatar, committing to no further strikes in the region.
On the economic front, Pakistan has commenced discussions with the International Monetary Fund (IMF) regarding a USD 7 billion loan and a review of the Resilience and Sustainability Facility (RSF). The IMF is pressing for the publication of reports on corruption and governance to ensure transparency.
Additionally, Pakistan has secured Rs565 billion and is now focusing on settling dues related to the China-Pakistan Economic Corridor (CPEC) projects. The government is also looking to adjust tariffs, requiring consumers to pay an additional Rs2.
In the energy sector, the prices of petroleum products are anticipated to rise significantly, and a 23/kWh Direct Subsidy Scheme (DSS) is being considered for a period of six years. Meanwhile, the State Bank of Pakistan (SBP) has introduced an interest-free 'cost sharing scheme' for e-bikes and rickshaws, alongside guidelines for resolution planning and core information requirements.
A Finnish company has announced its intention to invest in the Reko Diq mining sector, signaling increased foreign interest in Pakistan's natural resources. Furthermore, the National Assembly has passed the Asaan Karobar Bill 2025, aiming to facilitate easier business operations in the country.
As the 30th deadline for filing returns approaches, Pakistan has procured 80,000 tonnes of sugar and is in search of an additional 100,000 tonnes. Meanwhile, a higher Federal Excise Duty on acetate tow is contributing to the smuggling and illicit trade of cigarettes.
This dynamic mix of political, economic, and market developments paints a complex picture for Pakistan as it navigates both internal and international challenges.