Karachi: In a remarkable uptick for the stock market, the KSE-100 Index ascended by 2,145 points, closing at 130,344 with a trading volume of 1,022 million shares. The surge was driven by significant activities in the banking, technology, and investment sectors.
According to Taurus Securities Limited, market leaders in terms of price change included companies like GADT, SEARL, and MUREB, while YOUW, PKGP, and BNWM faced declines. The positive performance in the stock market aligns with recent economic developments in the country.
The State Bank of Pakistan's reserves increased by $5 billion, reaching $14.5 billion, thereby surpassing the target set by the International Monetary Fund. This financial milestone has been welcomed by the Prime Minister, who also lauded the rise in tax revenues.
Despite the stock market's positive trajectory, other economic indicators show mixed results. The growth in the manufacturing sector has slowed to a ten-month low due to a fall in new orders. Meanwhile, the government is set to withdraw some incentives related to remittances and has announced a cut in National Savings profit rates.
Additionally, the government has reduced regulatory duties on a variety of imported items ranging from SUVs to food, in an attempt to ease import costs. However, new levies are expected to increase fuel oil prices, which might impact the broader economy.
On the fiscal front, the government has targeted a 17% share for SME credit by 2028, as stated by Finance Minister Aurangzeb at a United Nations summit. Nepra has released a countrywide uniform tariff for FY25-26, although it rejected a government plea to apply a revised Schedule of Tariffs to Karachi Electric.
While petroleum product sales have risen by 7% in FY25, the cement sector has sought a reduction in duties and taxes, following a drop in domestic sales during FY2024-25. The Special Investment Facilitation Council is urging a policy overhaul to revive a $6 billion refinery upgrade plan by the end of September.
As the government misses its development target, these emerging economic factors highlight the complexities and challenges facing Pakistan's economy.