Islamabad: The KSE-100 index surged by 820 points yesterday, closing at 150,591 with a trading volume of 664 million shares, even as Pakistan grapples with the aftermath of devastating floods, a substantial external debt burden, and ongoing efforts to attract foreign investment. SEARL, SCBPL, and THALL led the market's ascent, while PGLC, GADT, and PKGP experienced declines. Trading focused primarily on the banking, food, and technology sectors.

The arrival of Chinese Foreign Minister Wang for the 6th Pakistan-China Foreign Ministers’ Strategic Dialogue coincided with the signing of 12 projects worth 235 million yuan, signaling continued collaboration between the two nations. A Chinese conglomerate also expressed interest in investing in Pakistan's maritime sector. This comes as the Prime Minister lamented the "lessons not learned" from the 2022 floods, which have been mirrored by recent floods in Pakistani Punjab caused by India releasing water into the Sutlej River, resulting in crop damage. Meanwhile, Karachi's recent rainfall has inflicted an estimated Rs15 billion in trade sector financial setbacks.

Pakistan's external debt, of which 58% is denominated in US dollars, continues to be a pressing concern. The IMF is urging increased scrutiny of parliamentary members' development initiatives. Roshan Digital Account (RDA) inflows have surpassed $10.7 billion. On the domestic front, the Economic Coordination Committee (ECC) rejected NEPRA's stance on a uniform fuel cost adjustment. Efforts are underway to improve credit availability for small-scale farmers and an economic census is planned. The Securities and Exchange Commission of Pakistan (SECP) has launched a capital market development fund. APTMA has requested that the Sui Northern Gas Pipelines Limited (SNGPL) waive outstanding gas bill arrears. Finally, green projects are anticipated to attract investment. Treasury bill yields remained relatively stable.