The capital market kicked off Wednesday’s session on a positive note, rebounding after two consecutive sessions of losses, buoyed by optimism surrounding Prime Minister Shehbaz Sharif’s visit to the exchange.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index, gaining 1,697.54 points, or 1.46%, to reach an intraday high of 117,750.22.
“Market is rebounding as it had declined in the past two sessions. Also PM is also coming today to the stock exchange,” noted Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company.
PM Shehbaz embarked on a daylong visit to Karachi on Wednesday to inaugurate the Federal Board of Revenue’s Faceless Customs Assessment System at the Karachi Port Trust. This initiative aims to enhance transparency and reduce customs clearance times.
He will also visit the South Asia Pakistan Terminal at the port. The PM will also head to the PSX and award the it the title of the world’s second-best-performing stock exchange in 2024.
During the 11th Apex Committee meeting of the Special Investment Facilitation Council (SIFC), the prime minister lauded the country’s improving macroeconomic indicators. He highlighted a reduction in inflation to 4.1%, a surge in foreign reserves from $4 billion to $12.5 billion, and the easing of the policy rate to 13%.
The premier also announced the rollover of a $2 billion loan deposit from the United Arab Emirates, which offers fiscal relief to the government. He emphasised the need for further electricity tariff reductions and called for enhanced export strategies, particularly through upcoming discussions with Indonesia’s president.
Finance Minister Muhammad Aurangzeb, speaking at a press conference on Tuesday, unveiled the government’s plan to rightsize 42 ministries and their 400 attached departments by June 30, 2025, to reduce expenditures and improve efficiency.
“We have decided to bring five or six departments under rightsizing in each phase,” the minister said while sharing the six-month performance of the High-powered Committee on Rightsizing.
Aurangzeb was accompanied by Bilal Azhar Kayani, Convener of the National Parliamentary Taskforce on Sustainable Development Goals (SDGs), and Ambassador at Large Dr Salman Ahmad, who heads the Implementation Committee.
The minister revealed that 60% of vacant regular posts—totaling 150,000—have been abolished or declared as “dying posts,” creating a tangible financial impact. This initiative aims to streamline government operations while maintaining fiscal discipline.
The diversion of re-gasified liquefied natural gas (RLNG) to the domestic sector surged to 450mmcfd in January 2025, from 250mmcfd in December 2024, under Sui Northern Gas Pipelines Limited’s jurisdiction.
This Rs2,350 per MMBTU differential between domestic and RLNG tariffs is expected to further exacerbate the gas sector’s circular debt.
The State Bank of Pakistan (SBP) reported that the government’s total debt increased by Rs1.452 trillion, or 2.1%, in the first five months of FY25, reaching Rs70.366 trillion as of November 2024. This rise is attributed to high government spending and external debt repayment needs.
Meanwhile, the Pakistan Stock Brokers Association (PSBA) raised concerns about the recently introduced Tax Law (Amendment) Act, 2024, which prohibits non-filers from opening stock exchange accounts. The PSBA has urged the government to address potential repercussions for the investor base.
The KSE-100 Index ended Tuesday’s session at 116,052.68, marking a decline of 202.44 points, or 0.17%, from the previous session’s close of 116,255.12.
