Karachi, The Karachi Stock Exchange (KSE-100) experienced a notable rise yesterday, gaining 253 points to close at 78,528, amid trading of 279 million shares. The movement in the market reflects investor optimism as the National Assembly gears up to potentially approve the new budget today.
According to Turus Securities Limited, the market's top performers in terms of price changes were PGLC, THALL, and HGFA, while NPL, KTML, and PTC were the top decliners. Trading activity was predominantly concentrated in the technology, banking, and power sectors, indicating sector-specific investor interest.
The financial landscape is marked by several critical developments. The Economic Coordination Committee (ECC) has decided to establish pension funds starting July 1, signaling a shift in social security policies. The government is also showing flexibility regarding non-filers with likely amendments to the finance bill, a move that could impact the tax framework.
In the energy sector, the government plans to offer offshore oil and gas exploration blocks in August, a strategy aimed at enhancing domestic energy production. Additionally, the Economic Development Working Party (CDWP) has approved 26 uplift projects, which could signify a boost in infrastructural development.
Forex reserves have seen a decline of $207 million week-over-week, amidst economic adjustments. Meanwhile, Pakistan’s remittances are projected to grow by 7% in 2024, as per the World Bank, suggesting a positive trend in external economic engagements.
However, domestic economic pressures are evident as petrol and High-Speed Diesel (HSD) prices are likely to increase, which could contribute to inflationary pressures. In another significant development, foreign investors repatriated a record $918 million in profits and dividends in May, underscoring the country's continued appeal to foreign investments despite economic challenges.
Finally, the government has committed to paying Rs 82 billion under a circular debt settlement plan to OGDCL, as part of efforts to stabilize the energy sector and ensure sustainable power supply.
These developments are crucial as they indicate both opportunities and challenges in Pakistan's economic landscape, with the government taking steps to stabilize the economy and attract further investment.