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Express Tribune
24-05-2025
- Business
- Express Tribune
PSX swings on budget speculation
Shares of 362 companies were traded. At the end of the day, 212 stocks closed higher. PHOTO: FILE Listen to article The Pakistan Stock Exchange (PSX) remained under pressure throughout the outgoing week, with the benchmark KSE-100 index shedding 0.46% week-on-week (WoW) to close at 119,103 points, as investors adopted a cautious stance ahead of the federal budget for fiscal year 2025-26. Market sentiment was further influenced by the release of key macroeconomic indicators, including a modest GDP growth of 2.68% year-on-year (YoY) for FY25 and a notable 5.47% YoY surge in 4QFY25, as per the National Accounts Committee. On a day-on-day basis, the PSX began the week on Monday with mixed sentiment as investors traded cautiously over pre-budget uncertainty, a widening trade deficit and concerns about the proposed tax measures amounting to Rs700 billion. The KSE-100 index recorded an increase of 40.49 points and settled at 119,690. Next day, the bourse closed bearish as market participants were anticipating the parliamentary approval of IMF-driven tax reforms, including the phasing out of industrial incentives and the implementation of new tax levies on the agricultural sector. The index recorded a decrease of 719 points. On Wednesday, the market staged a robust rebound as the KSE-100 climbed over 950 points, driven by active investors, who were encouraged by pro-growth fiscal measures and realigned their portfolios ahead of budget presentation. The index recorded a notable increase of 960 points at 119,931. However, the PSX succumbed to profit-taking on Thursday, with the KSE-100 dropping 778 points. Finally, it wrapped up the week on a negative note with a loss of 50 points, weighed down by investor anxiety ahead of the federal budget and over the proposed IMF-backed tax measures targeting exporters and industrial sectors. "The market remained under pressure throughout the week as investors adopted a cautious stance ahead of the upcoming budget announcement," wrote Arif Habib Limited (AHL) in its weekly review. On the economic front, the National Accounts Committee released the latest GDP data, revealing a 2.68% YoY growth for FY25, with a 5.47% YoY growth in 4QFY25. Meanwhile, profit rates across various National Saving Schemes (NSS) were reduced up to 100 basis points, where the most notable cut was seen in the Savings Account as the return was lowered from 10.5% to 9.5%, AHL said. Additionally, power generation in April 2025 surged 22% YoY (the highest in 48 months) to 10,513 gigawatt hours (GWh). The State Bank's reserves rose $1.03 billion to $11.4 billion due to the loan tranche disbursement by the IMF. Overall, the KSE-100 remained negative with the index closing at 119,103 points, down 0.46% WoW. Sector-wise, the negative contribution came from cement (339 points), oil and gas exploration (268 points), fertiliser (222 points), chemical (62 points) and automobile assemblers (55 points). Meanwhile, the sectors that contributed positively were technology and communication (62 points), power generation and distribution (60 points), refinery (45 points) and textile composite (31 points). Stock-wise, the negative contributors were Lucky Cement (257 points), Fauji Fertiliser Company (237 points), Mari Petroleum (211 points), MCB Bank (131 points) and Pakistan Petroleum (75 points). Individually, the positive contribution came from NBP (127 points), Systems Limited (66 points), Bank AL Habib (65 points), Pakgen Power (56 points) and Attock Refinery (48 points). Foreigners' selling was witnessed during the week, which clocked in at $0.29 million compared to net selling of $9.13 million last week. Major selling was witnessed in banks ($1.09 million). Average volumes arrived at 492 million shares (down 25.4% WoW) while average traded value settled at $84.4 million (down 38.4%). Among other major news, more luxury items were set to attract sales tax in the budget and the government was expected to slap GST on petroleum products and increase the petroleum levy. Wadee Zaman of JS Global concurred, saying the KSE-100 index posted mixed trends during the outgoing week, reflecting a cautious investor sentiment ahead of the federal budget, and closed at 119,103 points, down 0.5% WoW. GDP growth for 3QFY25 stood at 2.4% while full-year FY25 growth was provisionally estimated at 2.68%, down from the previously projected 3.6%, he said. Meanwhile, Pakistan was negotiating with the UAE-based commercial banks to secure external financing of up to $350 million to help meet its external funding needs. Auto financing in April 2025 came in at Rs263 billion, up 12% YoY, marking the fifth consecutive month of YoY growth, Zaman added.
Time of India
21-05-2025
- Business
- Time of India
Pakistan GDP growth misses estimates; economy grows just 2.68% in FY25 even as country eyes $4.9 billion in external loans
Pakistan plans to secure external commercial financing totalling $4.9 billion for the fiscal year 2025-26. (AI image) Pakistan's GDP growth has missed the government's growth target for FY 2024-25, recording only 2.68 per cent growth against the anticipated 3.6 per cent, according to sources from Pakistan's National Accounts Committee, as reported by ARY News on Tuesday. The findings were disclosed at a National Accounts Committee session, which was presided over by the Planning Secretary of Pakistan, ARY News said according to an ANI report. The committee's assessment showed that Pakistan's GDP amounted to $411 billion, whilst per capita income rose to$1,824. The performance across sectors showed variation, with agricultural growth at 1.8 per cent in the initial three quarters, whilst the industrial sector experienced a decline of 1.14 per cent. The services sector demonstrated significant progress, achieving 39 per cent growth from July through March. Also Read | 'Big ban' actions: How India is shunning Pakistan and its allies like Turkey & Azerbaijan - top 5 measures Pakistan plans to secure external commercial financing totalling $4.9 billion for the fiscal year 2025-26. The government's financing strategy includes obtaining $2.64 billion as short-term loans from commercial banks. These loans are anticipated to carry interest rates between 7-8 per cent and would come without stringent conditions or performance criteria, the report said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรดทองCFDs ด้วยค่าสเปรดที่ต่ำที่สุด IC Markets สมัคร Undo The financing arrangement also includes long-term borrowing of $2.27 billion from commercial banks. The country is currently engaging with four prominent international banking institutions to facilitate these financial arrangements. Pakistan aims to secure $1.1 billion from the Industrial and Commercial Bank of China (ICBC), whilst seeking $500 million each from Standard Chartered Bank and Dubai Islamic Bank. Additionally, they are pursuing a commercial guarantee for a $500 million loan from the Asian Development Bank (ADB). Also Read | IMF issues strong warning, sets 11 new conditions for Pakistan amid heightened tensions with India In a related development, the International Monetary Fund (IMF) has established a target for Pakistan to increase its foreign exchange reserves to $13.9 billion by end-June. The State Bank of Pakistan presently maintains net reserves of about $14 billion, which is sufficient to support three months of imports. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
NDTV
21-05-2025
- Business
- NDTV
Pakistan Seeks $4.9 Billion More In Loans After Missing Growth Target
Islamabad: The Pakistan government is reportedly planning to borrow USD 4.9 billion from international banks to meet its external financing needs and strengthen its foreign exchange reserves. This comes after the International Monetary Fund, earlier this month, authorised the "immediate disbursement" of a billion-dollar bailout to the South Asian nation's troubled economy. Islamabad's strategy is to secure USD 2.64 billion in short-term loans from international commercial banks at expected annual interest rates between 7 per cent and 8 per cent without strict conditions or performance benchmarks, according to a report by ARY News. Additionally, the government is seeking USD 2.27 billion through long-term borrowing arrangements from commercial banks, the report said. As part of the plan, Islamabad is reportedly in touch with four major international banks. This includes a proposal to obtain USD 1.1 billion from the Industrial and Commercial Bank of China (ICBC), along with USD 500 million each from Standard Chartered Bank and Dubai Islamic Bank. Moreover, a commercial guarantee is also being sought for a USD 500 million loan from the Asian Development Bank (ADB), according to a report by news agency ANI. The additional funding is reportedly part of Islamabad's broader strategy to meet Pakistan's external financing needs, which are driven by large debt repayment obligations and limited access to global capital markets, as well as to strengthen its foreign exchange reserves. The International Monetary Fund (IMF) has set a goal for Pakistan to advance its reserves to $13.9 billion by the end of June, with the country's State Bank currently holding a reserve of approximately $14 billion, which is enough to cover three months of imports. Pakistan Fails To Meet Economic Target The Pakistani federal government has reportedly fallen short of its economic growth target for the fiscal year 2024-25, achieving a growth rate of just 2.68 per cent against a projected 3.6 per cent, ARY News reported on Tuesday, citing sources from Pakistan's National Accounts Committee. This was reportedly revealed during a National Accounts Committee meeting in Islamabad, chaired by the Secretary Planning. The report said that Pakistan's economic output reached USD 411 billion, with per capita income increasing to USD 1,824. Sector-wise performance varied, with agriculture growing by 1.8 per cent during the first three quarters, while the industrial sector declined by 1.14 per cent. Notably, the services sector posted a strong growth of 39 per cent between July and March, as per ARY News.
Express Tribune
21-05-2025
- Business
- Express Tribune
Economy posts surprise growth of 2.7%
Development of SMEs, youth entrepreneurship, and rigorous economic diplomacy would be vital for the quick revival of the economy, regional expert Dr Mehmoodul Hassan Khan said. photo: file Listen to article The government on Tuesday claimed that the economy grew by 2.7% in the current fiscal year, driven by an unexpected 4.8% growth in the industrial sector — despite earlier concerns over contractionary policies and the high cost of doing business. Throughout the year, the government had reported a decline in electricity generation. However, it now claims a 39.3% increase in gross value addition in the electricity sector. Similarly, the construction sector, previously struggling due to high taxation and low demand, was reported to have grown by 6.6%. On the other hand, major crops saw a drop in output: wheat production declined by 9%, rice by 1.4% and cotton by a significant 31%. Despite the surprising growth claim, the 2.7% GDP increase is nearly equal to the population growth rate of 2.6%, suggesting that poverty and unemployment may have worsened. Moreover, the government missed even its modest growth target of 3.6%. The 113th meeting of the National Accounts Committee approved the provisional GDP growth rate of 2.68% for fiscal year 2024-25, stated the Ministry of Planning after the meeting. Planning Secretary Awais Manzur Sumra chaired the NAC meeting. Finance Minister Muhammad Aurangzeb would officially launch the economic growth figure on June 1. The planning ministry further said that the NAC approved the provisional growth rates in agriculture, industry and services sector. It said that the agriculture sector grew marginally at 0.6%, but the industrial sector grew 4.8% and the services sector by 2.9%. The 2.7% growth rate can only be attained, if Pakistan's economy grows at a pace of 5.3% in the April-June quarter of this fiscal year, said an official on the condition of anonymity. The economic growth in the third quarter was 2.4%. The per capita income is now claimed to have increased to $1,824 and the size of the economy in dollar terms is $411 billion, said the Ministry of Planning. It said that on the basis of the latest figures of the national accounts aggregates for FY 2024-25, the overall size of the economy stands at Rs114.7 trillion or $410.96 billion as compared to $371.7 billion last year. It underlined that the series of per capita income from 2016-17 onwards will be revised after the receipt of backward and forward projections of population from the sources on the basis of the 2023 Population Census. Agriculture sector The NAC approved that important crops have declined by 13.5% due to a decrease in the production of wheat from 31.8 million metric tons to 29 million tons. The claim of 29 million tons wheat production was far higher than the Ministry of Finance's own projections of around 26 million tons expected production this year. The Planning Ministry said that the production of maize decreased by 15.4% to 8.24 million tons, rice output fell 1.4% to 9.7 million tons and sugarcane output decreased 4% to 84.24 million tons. The cotton crop sustained a major hit with a 31% dip in production. The cotton bales decreased from 10.22 million bales to 7.1 million bales. But the Planning Ministry claimed that despite a 17% reduction in the production of grams, other crops have posted a provisional growth of 4.8% due to double-digit growth in the production of potato, onion, mango and sesame. While cotton ginning & miscellaneous components have declined by 19%, livestock, forestry and fishing have posted provisional growth rates of 4.72%, 3.03% and 1.42%, it added. Industrial growth The Planning Ministry claimed that in this fiscal year, "industry has shown a growth of 4.77% provisionally". Despite an increase in the production of coal (2.84%), the mining & quarrying industry contracted by 3.4% because of a decrease in production of natural gas by 7.05%), crude oil output decreased by 14.7%. The planning ministry said that large scale manufacturing also witnessed a negative growth of 1.53%, with mixed trend in the production of various groups. "Electricity, gas and water supply industry has shown a positive growth of 28.9% primarily due to low base effect of FY 2023-24, i.e., -19.86% as well as increase in output of WAPDA & companies", claimed the Planning Ministry. Construction industry increased by 6.61% due to increase in construction-related expenditures by the private sector and general government, it added. The growth in the construction sector is based on the claim that the government will spend Rs1.1 trillion on development in this fiscal year, which is untrue. Likewise, the electricity growth claim is based on the assumption that Rs1.2 trillion power subsidies will be utilized in this fiscal year. Services Sector The planning ministry said that the services sector has also shown a growth of 2.91% in 2024-25 with positive contributions from all the constituents. Wholesale and retail trade has witnessed a modest growth of 0.14% because of slower output growth in agriculture and manufacturing. Transport and storage industry has increased by 2.2% because of an increase in output of water, air and road transport, it added. Information & Communication has grown by 6.5% due to increase in output of computer programming and consultancy activities 24%). Slower rate of inflation and low base effect has resulted into positive growth rates in Finance & Insurance and Public Administration and Social Security industries at 3.22% and 9.92% respectively, it added, Further, both Education and Human health and Social Work industries have posted positive growth of 4.43% and 3.71% respectively, said the planning ministry.
India Today
21-05-2025
- Business
- India Today
No growth, just loans: Pakistan seeks $4.9 billion from world after securing IMF deal
Pakistan's economy grew by just 2.68% in the fiscal year 2024-25, falling short of its target of 3.6%, according to a report by ARY News. The report came after a meeting of the National Accounts Committee, led by the Secretary of to ARY News, the report was revealed during a meeting of the National Accounts Committee, chaired by Pakistan's Secretary of Planning. The meeting revealed that the country's economic output reached USD 411 billion, with per capita income increasing to USD 1,824. Sector-wise performance varied, with agriculture growing by 1.8 per cent during the first three quarters, while the industrial sector declined by 1.14 per the services sector posted a strong growth of 39 per cent between July and March, as per ARY News. In parallel, Pakistan is preparing to raise USD 4.9 billion in external commercial financing for the next fiscal year (FY2025- 26), according to sources familiar with the matter. As part of its financing plan, the government intends to secure USD 2.64 billion in short-term loans from commercial banks at expected interest rates of 7-8 per cent, without strict conditions or performance benchmarks, as per ARY News. An additional USD 2.27 billion is also expected to come through long-term borrowing arrangements from commercial banks. Efforts are underway to tap four major international banks. This includes a proposal to obtain USD 1.1 billion from the Industrial and Commercial Bank of China (ICBC), along with USD 500 million each from Standard Chartered Bank and Dubai Islamic Bank. advertisementMeanwhile, the International Monetary Fund (IMF) has set a goal for Pakistan to increase its foreign reserves to USD 13.9 billion by the end of June. The State Bank of Pakistan currently holds around USD 14 billion, which is enough to cover three months of month, Pakistan's central bank cut its key policy rate by 100 basis points to 11%, citing an improved inflation outlook and resuming a series of cuts from a record high of 22%, following a brief pause in March, to support latest national accounts aggregates for fiscal 2024/25 showed the size of the economy at 114.7 trillion rupees ($410.96 billion) up from 105.1 trillion rupees ($ 371.66 billion), the committee manufacturing sector growth slowed to a seven-month low in April, with the HBL Pakistan Manufacturing Purchasing Managers' Index (PMI) easing to 51.9 from 52.7 in March, weighed by concerns over global inputs from ANI, ReutersTune InMust Watch
