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Time of India
6 days ago
- Business
- Time of India
Pakistan inflation rises 3.5% in May, exceeding forecast
Pakistan's Consumer Price Index (CPI) rose 3.5% year-on-year in May, the Statistics Bureau said on Monday, exceeding the Finance Ministry's 1.5% to 2% forecast. The country's economy is on a fragile path to recovery under a $7 billion IMF program requiring reforms and policies that resulted in higher power tariffs and taxes. Annual inflation had dipped to 0.3% in April, its lowest in nearly a decade and a marked fall from 11.8% in May 2024 and a record near 40% a year earlier. The finance ministry in its monthly report said inflation would pick up to between 3% and 4% in June. We're witnessing the base effect fading, that's why there was an uptick in CPI year-on-year," said Adnan Sheikh, deputy head of research at Pak Kuwait Investment Company. "However, price pressures continue to fade which can be seen by two months of consecutive month-on-month deflation, which hasn't happened since January 2021." Live Events Prices in May declined 0.3% from the previous month. Pakistan's planning minister on Monday said that the government expects inflation to average 7.5% in the next fiscal year. The country's central bank, in its half-yearly report released in April, said it expects average inflation for the current fiscal year to end-June of between 5.5% and 7.5%, with the current rate at 4.6%. The central bank cut its main policy rate by 100 basis points to 11% last month, resuming an easing cycle that had brought the rate down from a record high of 22% after a brief pause in March. It said the current rate was sufficient to stabilise inflation within the 5% to 7% range while supporting economic growth but warned of risks from food price volatility, energy price adjustments, and uncertainty in global commodity markets. Pakistan will present its annual budget on June 10 for the 2025-26 financial year, outlining taxation and policy measures that could affect inflation.
Zawya
08-05-2025
- Business
- Zawya
Trading halted on Pakistan's benchmark share index, shares sink 6%
Pakistan's benchmark index closed down 6.7%, recording its largest single-day points drop, while its bonds were also under pressure following reports of drones being shot down in major cities including Karachi and Lahore. Trading at the Pakistan Stock Exchange was halted for an hour on Thursday after the benchmark index plunged 6.3%, a notification from the exchange showed. Pakistan's international bonds were also sold, with the 2036 maturity suffering the biggest losses, down more than 2 cent to be bid at 72.4 cents in the dollar, Tradeweb data showed. Pakistan shot down 25 drones from India that violated its airspace, the military said on Thursday, a day after Indian strikes on multiple targets in the country fanned fears of a larger military conflict between the nuclear-armed neighbours. "Reports of drones being shot down in major cities including Karachi and Lahore pushed the market down more than 6% in a short span of time, triggering a halt," said Adnan Sheikh, head of research at Pak Kuwait Investment Company. The country's benchmark share index had fallen 3.1% on Wednesday. "The situation has raised fears about an escalation between the two counties, and it represents another example of how the Global South is likely to prove increasingly important for the global backdrop," Jim Reid, global head of macro and thematic research at the Deutsche Bank, said in a note. India's Foreign Secretary Vikram Misri said on Thursday that India's executive director at the International Monetary Fund would represent the country's position at a board meeting on Friday, where a $1.3 billion loan to Pakistan will be reviewed. The IMF, in a response to questions from Reuters, said on Wednesday it supported Pakistan's economic programme through its Extended Fund Facility and hoped for a "peaceful resolution and de-escalation between the two parties".
CNA
08-05-2025
- Business
- CNA
Trading halted on Pakistan's benchmark share index, shares sink 6%
KARACHI :Pakistan's benchmark index closed down 6.7 per cent, recording its largest single-day points drop, while its bonds were also under pressure following reports of drones being shot down in major cities including Karachi and Lahore. Trading at the Pakistan Stock Exchange was halted for an hour on Thursday after the benchmark index plunged 6.3 per cent, a notification from the exchange showed. Pakistan's international bonds were also sold, with the 2036 maturity suffering the biggest losses, down more than 2 cent to be bid at 72.4 cents in the dollar, Tradeweb data showed. Pakistan shot down 25 drones from India that violated its airspace, the military said on Thursday, a day after Indian strikes on multiple targets in the country fanned fears of a larger military conflict between the nuclear-armed neighbours. "Reports of drones being shot down in major cities including Karachi and Lahore pushed the market down more than 6 per cent in a short span of time, triggering a halt," said Adnan Sheikh, head of research at Pak Kuwait Investment Company. The country's benchmark share index had fallen 3.1 per cent on Wednesday. "The situation has raised fears about an escalation between the two counties, and it represents another example of how the Global South is likely to prove increasingly important for the global backdrop," Jim Reid, global head of macro and thematic research at the Deutsche Bank, said in a note. India's Foreign Secretary Vikram Misri said on Thursday that India's executive director at the International Monetary Fund would represent the country's position at a board meeting on Friday, where a $1.3 billion loan to Pakistan will be reviewed. The IMF, in a response to questions from Reuters, said on Wednesday it supported Pakistan's economic programme through its Extended Fund Facility and hoped for a "peaceful resolution and de-escalation between the two parties".
India Today
08-05-2025
- Business
- India Today
Trading halted on Pakistan stock exchange after 7% crash post Operation Sindoor
Stock market trading was stopped for an hour at the Pakistan Stock Exchange (PSX) on Thursday after its main index fell sharply. The sudden drop came as panic spread in the market following reports that drones had been shot down in major cities, including Karachi and to the official notification from the exchange, trading was paused after the benchmark index plunged 6.3% in a short period. The sharp fall triggered automatic circuit breakers to stop further experts said that selling pressure increased after reports emerged that Pakistani military had shot down 12 drones from India. The military claimed these drones had entered Pakistan's airspace a day after India carried out missile strikes on terror targets inside Pakistan and Pakistan-occupied Kashmir under 'Operation Sindoor'.Adnan Sheikh, Head of Research at Pak Kuwait Investment Company, said, 'Reports of drones being shot down in major cities including Karachi and Lahore pushed the market down more than 6% in a short span of time, triggering a halt.'Pakistan's stock market had already been under pressure due to tensions with India. On Wednesday, the market had opened lower and later closed down by 3.1% after falling nearly 6% during the day. This marked one of the biggest drops in recent just stocks, Pakistan's international bonds also came under stress. Trade data showed that the 2036 bond maturity fell by more than 1 cent, now trading at 73.8 cents on the dollar. Investors pulled back fearing a wider conflict between the two neighbouring countries, both of which have nuclear Reid, global head of macro and thematic research at Deutsche Bank, said in a note, 'The situation has raised fears about an escalation between the two countries. It also shows how the Global South is likely to become more important for the global backdrop.'The Sensex was down by around 138 points on Thursday. However, analysts said the Indian market was relatively calm compared to Pakistan. The Indian markets did not face the same level of selling pressure, and analysts pointed out that investors are more focused on economic data and corporate recent military action came after a terror attack in Pahalgam, Jammu and Kashmir, that killed 26 civilians in late April. In response, India launched missile strikes on nine locations inside Pakistan and Pakistan-occupied Kashmir. The areas reportedly targeted included Bahawalpur, Kotli, Muzaffarabad, Muridke, Gulpur, Bhimber, Bagh, Chak Amru and Indian government also held an all-party meeting on Thursday to brief leaders about the success of Operation Sindoor. Defence Minister Rajnath Singh told the leaders that at least 100 terrorists were eliminated. However, he said further details would be shared later as the operation was still month, Pakistan's market had also suffered a major crash. The benchmark index had fallen by more than 8,700 points following an announcement by former US President Donald Trump about new trade tariffs. That crash had also led to a temporary trading believe that the current market situation in Pakistan is likely to remain unstable in the short term. Many fear more strikes or military action could take place, which may lead to further market to Pakistan, analysts said India's market is in a better position. The Indian economy has shown stronger signs of recovery, and investor interest remains steady due to strong corporate earnings and trade In advertisement
Reuters
08-05-2025
- Business
- Reuters
Trading halted on Pakistan's benchmark share index, shares sink 6%
KARACHI, May 8 (Reuters) - Trading was halted for an hour on Thursday at the Pakistan Stock Exchange after the benchmark index plunged 6.3%, a notification from the exchange showed, following reports of drones being shot down in major cities including Karachi and Lahore. Pakistan's international bonds also came under pressure with the 2036 maturity suffering the biggest losses, down more than 1 cent to be bid at 73.8 cents in the dollar, Tradeweb data showed. Pakistan shot down 12 drones from India that violated its airspace, the military said on Thursday, a day after Indian strikes on multiple targets in the country fanned fears of a larger military conflict between the nuclear-armed neighbours. "Reports of drones being shot down in major cities including Karachi and Lahore pushed the market down more than 6% in a short span of time, triggering a halt," said Adnan Sheikh, head of research at Pak Kuwait Investment Company. The country's benchmark share index (.KSE), opens new tab closed down 3.1% after opening down almost 6% on Wednesday. "The situation has raised fears about an escalation between the two counties, and it represents another example of how the Global South is likely to prove increasingly important for the global backdrop," Jim Reid, global head of macro and thematic research at the Deutsche Bank, said in a note.
