Karachi: The KSE-100 index gained 315 points to close at 79,333 yesterday, with 914 million shares traded. Performance highlights included significant gains in SRVI, PIBTL, and PKGS, while SHFA, DGKC, and KOHC saw notable declines. The trading activity was primarily concentrated in the technology, investment banks, and textile spinning sectors.
According to Taurus Securities Limited, a slew of economic news and government actions is shaping market movements and investor sentiments. The government’s ongoing negotiations with the IMF are nearing fruition, with expectations to secure a $7 billion bailout on the 25th, despite failing to draw support from the opposition. The impending IMF program’s approval has also led to a rebound in Eurobonds.
In addition, there have been significant policy shifts and economic measures: the government has announced a substantial reduction in petrol and diesel prices, introduced proposals to boost remittances, and revealed plans for digital invoicing and audits to bridge a Rs7 trillion tax gap. Another notable development is the investment offer from Saudi Arabia, which entails a 15% investment in the Reko Diq project.
Further stirring economic waters are the adjustments in profit rates on saving schemes, the introduction of a new gas tariff mechanism to tackle circular debt, and the successful reliability test of the Suki Kinari Hydropower Project. Moreover, the cost of the Diamer Bhasha dam project has escalated significantly from Rs479 billion to Rs1,400 billion.
Amid these extensive governmental and financial activities, PM Shehbaz Sharif has directed the finalization of an E-vehicle policy by November, signaling a robust push towards modernizing Pakistan’s automotive sector. Additionally, Pakistan and China have signed a $382 million agricultural deal, underscoring a deepening cooperation in this vital sector.
The SAPM on Digital Media, Fahd Haroon, expressed a bullish outlook on Pakistan’s IT sector, despite recent data showing a 26.85% drop in farm tractor production over two months, highlighting the challenges and opportunities within Pakistan’s economic landscape.