Islamabad: The benchmark KSE-100 index saw a significant jump of 796 points yesterday, closing at 156,181 with a trading volume of 1,355 million shares. This market upswing comes as the government grapples with the devastating financial impact of recent floods and considers implementing a mini-budget. TRG, PIBTL, and KTML led the market in price gains, while LOTCHEM, AKBL, and PSX experienced the largest declines. Trading activity was primarily focused on the technology, investment companies, and banking sectors.
The government is currently assessing the economic fallout from the widespread flooding, which has severely depleted national resources. This evaluation is expected to be finalized within the next ten days. Simultaneously, officials from Pakistan and Iran have pledged to strengthen bilateral economic ties, aiming for a substantial $10 billion trade target.
In other financial developments, the Supreme Court is scrutinizing parliament's authority to impose a super tax, while the government has streamlined the process for new RLNG connections. The Reko Diq project has secured over $5.5 billion in commitments from international financial institutions, and the administration maintains that the nation's debt trajectory is increasingly sustainable. Pakistan International Airlines (PIA) has reported a profit for the first half of the year, a positive development ahead of its planned privatization.
The large-scale manufacturing (LSM) sector experienced a 9% year-on-year growth, while the Public Sector Development Programme (PSDP) has contracted to a mere 0.8% of GDP. August witnessed a 15% year-on-year increase in private sector credit, with consumer lending reaching unprecedented levels, fueled by monetary easing and economic rebound. However, a decline in textile exports has contributed to a widening trade deficit, now reaching $6 billion. The Special Investment Facilitation Council (SIFC) is working to tackle challenges encountered by refineries, and Finance Minister Ishaq Dar has emphasized the necessity of a coordinated gas strategy to ensure fertilizer supply and price stability. Steel producers are facing difficulties in obtaining government subsidies, while KAPCO has initiated commercial operations of its 495MW power plant.