FLASHNEWS:

Pakistan’s Economy Sees Major Financial Movements as KSE-100 Rises

Karachi: The Karachi Stock Exchange (KSE-100) index rose by 106 points yesterday, closing at 80,672, with significant trading volume reaching 610 million shares. Key sectors such as technology, banks, and power saw the most activity, indicating a vibrant trading day. This financial update comes amid a flurry of economic developments, including crucial negotiations with the IMF and significant government financial maneuvers.

According to Turus Securities Limited, Pakistan and the International Monetary Fund (IMF) have made substantial progress in virtual discussions concerning a new financial aid package. In other major financial news, the World Bank disbursed a historic $2.25 billion during the fiscal year 2023-24. Additionally, government borrowing has surged by 130% to Rs8.564 trillion in FY24, highlighting a dramatic increase in fiscal activities.

Remittances also showed a robust increase of over 10%, totaling $30.3 billion for the fiscal year. The State Bank of Pakistan (SBP) successfully raised Rs81 billion through Pakistan Investment Bonds (PIB) auctions. Amid these developments, the government is considering taxing agricultural income to meet IMF conditions, a move announced by Mr. Zardari.

Other notable economic adjustments include relief measures for protected power consumers and the approval by the Oil and Gas Regulatory Authority (Ogra) for Parco to export 50,000 tonnes of furnace oil. The Federal Board of Revenue (FBR) is also set to begin the registration process for the Tajir Dost Scheme in 42 cities. Furthermore, the Suki Kinari hydroelectric project is scheduled to start generation in November, which could add significant energy capacity.

In the political arena, the Pakistan Peoples Party (PPP) and the Senate of Pakistan intervened to defer a bill concerning the management of State-Owned Enterprises (SOEs), while the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has called for regulatory duties on all old and used vehicles to protect local manufacturers.