Karachi: The KSE-100 index saw a significant increase yesterday, gaining 486 points to close at 78,226, with 443 million shares traded. The top performers in terms of price were CNERGY, NRL, and ATRL, while PSEL, JVDC, and PIOC were the biggest decliners. Trading activity was predominantly focused on the refinery, technology, and cement sectors.
According to Turus Securities Limited, the economic landscape presents a mix of challenges and advancements. The parliamentary panel has raised concerns over corruption in the FBR and the power sector, warning of potential unrest due to high electricity costs. Additionally, the government's struggles with capacity charges and pricing policies in the energy sector continue to pose significant challenges.
Despite these issues, there have been notable developments such as the Roshan Digital Account (RDA) inflows reaching $8.255 billion and initiatives by the State Investment Facilitation Corporation (SIFC) significantly boosting Pakistan’s exports. The Cabinet Committee on Privatization (CCOP) has approved the sale of six power firms and is considering coal imports from Kyrgyzstan to enhance power generation.
In further efforts to improve the economic framework, the government is preparing a new industrial policy and has approved measures to support small and medium enterprises (SMEs) by covering up to 20% of SME loan amounts. Moreover, significant business expansions are on the horizon, with Maersk planning a $2 billion investment.
The agriculture and construction sectors face their own set of challenges with a 3% year-over-year dip in urea sales and a 6.81% decline in July cement dispatches. The government has responded by approving the import of 100,000 tonnes of urea to prevent shortages and is contemplating an increase in the Goods and Services Tax (GST) on tractors to 14%.
In corporate movements, Lucky Core has been given the green light to acquire certain Pfizer assets, and Maple Leaf Cement is diversifying into the fertilizer sector. In the automotive industry, Kia is gearing up to launch four new cars in Pakistan, reflecting continued growth and diversification in the country’s economic sectors.