Karachi: The Karachi Stock Exchange's KSE-100 index witnessed a notable uptick, surging by 1,425 points to close at 119,962, driven by active trading and strong performances in specific sectors. The market saw a volume of 695 million shares traded, with significant activity concentrated in the refinery, technology, and food sectors.
In terms of individual performance, PTC, AVN, and BNWM led the gains, while POML, PKGP, and NML were among the top decliners. This market activity comes amidst a series of significant economic developments in Pakistan.
On the international front, Pakistan has called for a 'composite dialogue' with India and offered a zero-tariff bilateral trade deal to the United States. Meanwhile, 19 Pakistani companies were recently sanctioned by the U.S., affecting bilateral relations.
Domestically, the government has approved a five-year tariff reform plan aimed at boosting exports and engaged in virtual consultations with the International Monetary Fund regarding the federal budget. However, the government's income tax bill faced opposition in the National Assembly.
In related economic news, Pakistan's foreign exchange reserves increased by $131 million to $15.614 billion, while inflows from the Roshan Digital Account dropped by 25% month-on-month in April. Large-scale manufacturing saw a 1.79% growth in March.
The energy sector is experiencing changes with the Senate body approving the Off-the-Grid (CPPs) Levy Bill for 2025, and K-Electric proposing a Rs5.02/kWh relief in its March Fuel Charge Adjustment. Meanwhile, the government has hiked the IFEM on petrol and diesel by Rs1.87 per litre.
In a move to support agriculture, the Chief Minister launched a scheme to distribute 1,000 free tractors and cash grants to farmers. However, fertiliser manufacturers expressed concerns over a proposed tax hike, and the textile sector may revert to costlier captive power plants.
Finally, the Federal Board of Revenue is considering allowing the import of five-year-old used vehicles, while the Securities and Exchange Commission of Pakistan has implemented significant enhancements to its Electronic Miscellaneous Reporting system.
These developments come as the International Energy Agency forecasts a slowdown in global oil demand growth for the remainder of 2025, potentially impacting Pakistan's economic landscape.