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Business Recorder
4 days ago
- Business
- Business Recorder
Stocks soar to all-time high level
KARACHI: The Pakistan Stock Exchange (PSX) closed at a new all-time high level on Tuesday driven by positive expectations from the upcoming budget and news of the Asian Development Bank's (ADB) approval of $800 million for Pakistan. The benchmark KSE-100 Index jumped 1,573.07 points or 1.32 percent to close at 120,451 points, crossing the 120,000-point mark for the first time on a closing basis. Market remained in green throughout the day and during the intraday trading, the index hit a high level of 120,694 points and a low level of 119,129.52 points. On Monday, BRIndex100 ended at 12,931.26 points, which was 161.91 points or 1.27 percent higher than the previous close with the total volume of 462.354 million shares. BRIndex30 also increased by 356 points or 0.95 percent to settle at 37,715.87 points with the total share trading volume of 308.199 million. Ahsan Mehnati at Arif Habib Limited (AHL) said the market closed at an all-time high, supported by broad-based buying across multiple sectors. He attributed the rally to the Asian Development Bank's (ADB) approval of an $800 million financing package for Islamabad, along with the government's proposed 4.2 percent GDP growth target for FY26 and the expected approval of Rs 880 billion Public Sector Development Program (PSDP) in the upcoming federal budget. 'Expectations of budgetary relief for oil refineries, the real estate sector, and agriculture, as well as rupee appreciation in the interbank market, also played a crucial role in driving the bullish close at the PSX,' he added. Trading activity remained strong on Tuesday, with 578.16 million shares changing hands, higher than the 498 million shares traded in the previous session. The traded value, on the other hand, also saw an increase to Rs 26.827 billion from Rs 23.450 billion on Monday. The overall market capitalization also rose by Rs 149 billion, reaching Rs 14.593 trillion compared to Rs 14.444 trillion on Monday. Out of 467 actively traded companies, 232 recorded gains, 187 declined, while 48 remained unchanged. Driving today's rally were key index movers including FFC, HBL, EFERT, LUCK, and BAHL, which collectively added 691 points to the benchmark. Among the top traded companies, K-Electric Ltd. ranked first on Monday with 144.646 million shares closing at Rs 5.32, followed by Faysal Bank, of which 26.656 million shares were traded and it closed at Rs 53.77. Invest Bank ranked third and closed at Rs 2.35 with 25.541 million shares turnover. PIA Holding Company Limited recorded the highest gains increase by Rs 3,231.20 and closed at a new high of Rs 35,543.19 followed by Khyber Textile Mills Limited whose share price value closed at Rs 3,376.76, up by Rs 306.98. Moreover, Sapphire Fibres Limited and Rafhan Maize Products Company Limited faced prominent losses with share values decreased by Rs 57.89 and Rs 35.12 respectively to close at Rs 1,055.19 and Rs 9,883.90. Meanwhile, BR Automobile Assembler Index closed at 21,206.26 points with a net positive change of 80.96 points or 0.38 percent with the total turnover remaining 1.565 million shares. BR Cement Index gained 95.07 points or 0.94 percent to settle at 10,247.02 points with a total turnover of 41.980 million. BR Commercial Banks Index closed at 35,694.98 points up by 685.57 points or 1.96 percent with a total turnover of 65.497 million shares. Meanwhile, BR Power Generation and Distribution Index ended at 20,847.51 points with a net positive change of 383.34 points or 1.87 percent with total turnover of 157.194 million shares. BR Oil & Gas Index closed at 11,489.18 points with a net positive change of 72.85 points or 0.64 percent on 18.443 million shares turnover. While BR Technology & Communication Index finished at 2,921.20 points marking a positive change of 18.79 points or 0.65 percent, with total turnover of 53.555 million shares. According to Topline the index surged to an intraday high of 1,816 points, as momentum picked up sharply after news broke that the Asian Development Bank (ADB) approved an $800 million loan under Pakistan's public finance program, a major vote of confidence in the country's economic reform trajectory. Adding further fuel to the rally, the IMF gave its nod to Pakistan's budget proposals, reinforcing hopes of continued fiscal discipline and policy continuity. Copyright Business Recorder, 2025
Business Recorder
28-05-2025
- Politics
- Business Recorder
Over five-year period: NA body concerned at data of increase in sugarcane yields
ISLAMABAD: The National Assembly Standing Committee on National Food Security and Research on Tuesday raised serious concerns over the data of an increase in sugarcane yields from an average of 600 maunds to 700 maunds per acre over a five-year period. The standing committee which met with MNA Syed Hussain Tariq in the chair, expressed concerns about the data presented during the Public Sector Development Program (PSDP) schemes meeting, which claimed an increase in sugarcane yields from an average of 600 maunds to 700 maunds per acre over a five-year period under a project funded with billions of rupees by the ministry. The committee members have doubts over the reliability of this data, noting that it was sourced from sugar mills, which have a tendency to underreport production figures to evade taxes, raising doubts about the accuracy of the reported increase. The committee criticised the modest yield improvement despite heavy public sector investment, calling it an inadequate return on the nation's resources and time. During the meeting, University of Agriculture Faisalabad (UAF) Vice Chancellor Prof Dr Zulfiqar Ali delivered a comprehensive briefing on the university's research initiatives and academic scope. He noted that UAF currently enrolls 33,556 students and offers 61 undergraduate, 112 postgraduate, and 225 diploma or short-course programmes. Of its 682 faculty members, 470 hold PhDs. Dr Ali outlined the university's strategic research focus, which includes genetics, seed and breed development, agronomic innovation, agro-technologies, and value addition. He highlighted progress in developing low-input, resource-efficient crops such as new durum wheat varieties. Chairman Tariq emphasised the importance of reducing crop cycles to conserve water and minimise pesticide use—an approach that also lowers the burden on farmers and promotes environmental sustainability. The briefing also showcased notable research progress, including the development of UAF-11, a high-yield Brassica variety, and Okra-3A as part of the vegetable breeding efforts. Further advancements in soybean, maize hybrids, mangoes, citrus fruits, and genetically modified sugarcane highlighted the university's dedication to improving crop yield, quality, and resilience. Dr Ali further informed the committee of the university's collaboration with the Asian Development Bank (ADB), focusing on DAP fertiliser production, import substitution, and precision agriculture. He said these efforts incorporate artificial intelligence, climate mitigation strategies, solar energy, and digital agriculture extension services. With 135 active collaborations — 84 international and 51 national—UAF also supports outreach efforts including Chinese language training and skill development for D-8 and OIC member countries. Under PSDP and ADB-funded projects, the university is establishing advanced laboratories for seed testing and certification to align with global export standards, he said. MNAs Rana Muhammad Hayat Khan, Waseem Qadir, Nadeem Abbas, Chaudhary Iftikhar Nazir, Musarrat Asif Khawaja, Zulfiqar Ali Behan, Usama Hamza, and Muhammad Ameer Sultan and senior officials of the Ministry of National Food Security and Research, Pakistan Agricultural Research Council (PARC) attended the meeting. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
Extra subsidy needs: MoF asks ministry to allocate Rs50bn for PD to secure TSG
ISLAMABAD: The Ministry of Finance has asked the Ministry of Planning, Development and Special Initiatives (MPD&SI) to surrender Rs 50 billion in favour of Power Division to obtain Technical Supplementary Grant (TSG) of equivalent amount to meet additional subsidy requirements, sources told Business Recorder. Recently, the Economic Coordination Committee (ECC) of the Cabinet approved allocation of Rs 50 billion from Public Sector Development Program (PSDP) to Power Division as subsidy to meet the Circular Debt (CD) targets agreed with the International Monetary Fund (IMF). On May 5, 2025, Power Division briefed the ECC that the Prime Minister's Office conveyed to Power Division on May 13, 2024 to firm up a plan for off-grid solutions including solarisation of tube wells in Balochistan in the upcoming budget for FY 2024-25. Development schemes in Punjab: Govt to approve Rs430m TSG Subsequently, consultative meetings were held under the chair of Minister for Power and Chief Minister Balochistan in which Minister for Commerce, Minister of State for Power, Provincial Ministers of Balochistan, Secretary, Power Division and Chief Secretary, Balochistan besides Power Sector specialists, participated. The recommendations were presented before the Prime Minister during a meeting on February 2, 2024 wherein the forum was pleased to decide solarisation of about 27,000 agricultural tube wells through compensation of up to Rs.2.000 million for each tube well having legal electricity connection subject to disconnection from the grid. It was also decided that cost of providing part financing for solarisation of these tube wells amounting to approximately Rs.55.000 billion should be borne by Government of Pakistan and government of Balochistan at a ratio of 70% and 30% respectively. Accordingly, a detailed Agreement, with implementation mechanism in the form of Standard Operating Procedures and a Steering Committee, was signed on July 8, 2024 by the Secretary, Power Division and Chief Secretary, Balochistan on behalf of respective governments. Approval of the Cabinet was received on July 31, 2024. So far, the federal government has released an amount of Rs.14 billion through Technical Supplementary Grant (TSG) from the budgetary allocation of the National Food Security and Research Division under the Prime Minister's National Programme for Solarisation of Agriculture Tube wells in Pakistan. The Power Division further briefed the forum that the remaining amount of Rs.24.5 billion is to be provided from the allocation under 'additional subsidy' for the power sector, as proposed by Finance Division. In this regard, it was highlighted that in order to achieve the revised CD flow target of Rs.337 billion by June 2025, Power Division needs to utilize the full amount of budgeted subsidies of Rs.1.229 trillion against the payables. It was also highlighted that Federal Cabinet on July 8, 2024 approved reallocation of Rs.50 billion from PSDP to fund the additional tariff differential subsidy requirement. This was also part of Rs 1.229 trillion allocated for power sector subsides. Accordingly, Power Division argued that presently the same amount can be allocated from the power sector budget allocation as proposed by the Finance Division. However, in case of any shortfall, the same amount should be remitted back to Power Division in June 2025 to meet the CD targets agreed with the Fund. Power Division submitted the two following proposals: (i) direct the Finance Division to surrender Rs.50 billion from PSDP to lump provision for power subsidy in Demand No.45 of Finance Division as per Cabinet approval of July 8, 2024; and (ii) Technical Supplementary Grant of Rs.24.500 billion from the demand No.45 of Finance Division to Power Division Demand No.33 for implementation of the Solarisation of Agricultural Tube wells in Balochistan. During the ensuing discussion, the forum was informed that the decision on solarisation was taken in July last year so the amount could not be budgeted and is being claimed now through TSG which should fully discharge the federal government responsibility of its share of the scheme. Copyright Business Recorder, 2025
Business Recorder
19-05-2025
- Business
- Business Recorder
IMF lowers GDP growth forecast to 2.6% for Pakistan
ISLAMABAD: The International Monetary Fund (IMF) has revised downward GDP growth for Pakistan to 2.6 percent for the outgoing fiscal year 2024-25 from the October projection of 3.2 percent, based on the weaker activity in first half (H1) and broader global uncertainty. The Fund in its latest report 'First review under the Extended Fund Facility (EFF) arrangement, requests for modification of performance criteria, and request for an arrangement under the Resilience and Sustainable Facility (RSF)', noted;2.5 percent GDP growth in fiscal year 2024, growth slowed somewhat in H1, recording 1.3 percent and 1.7 percent (yoy) in fiscal year Q1 and Q2, respectively, reflecting lower yields from the major Kharif crops and still-subdued industrial activity. Current expenditure was as per the Fund program 18.9 percent of GDP while current projection is the same (even though the growth has been downgraded from the program projection) though for next year the projection is 17.8 percent however the realization of this would depend on achieving the projected growth rate of 3.6 percent. IMF lowers Pakistan's FY25 GDP growth forecast to 2.6% Public Sector Development Program was under the Fund program this year projected at 2.3 percent of GDP while the projection is now 2.5 percent however disbursements by the Planning Ministry do not lend credence to this upgrade. Defence was budgeted and disbursed 1.7 percent of GDP while for next fiscal year it is projected at 1.9 percent of GDP. Privatisation proceeds are budgeted at zero percent of GDP for the current year and for the next four years by the Fund. Output of major crops was disappointing in H1 and industrial activity has remained subdued, but based on recent high frequency indicators projected an acceleration in fiscal year 2025 H2 and thereafter. The Fund stated that inflation fell to 0.7 percent (yoy) in March driven by tight macro policies and, principally, lower food and energy prices. However, core inflation is still elevated at around 9 percent. For the outgoing fiscal year 2025 inflation is revised down, although it is projected to increase notably in the coming months due to adverse base effects, with a durable return to the target range (5–7 percent) expected during fiscal year 2026, provided policy remains appropriately tight. The current account deficit (CAD) for fiscal year 2025 is projected at about $0.2 billion (0.1 percent of GDP), helped by resilient exports and a stronger remittance outlook, as improved macro and FX stability has supported a rebound in remittance inflows through formal channels. Over the medium term, the CAD is expected to widen modestly to around 1 percent of GDP as imports rebound. Gross (net reserves were not specified) international reserves are expected to continue to strengthen, supported by financing committed by multilateral and bilateral creditors, as well as prospective RSF disbursements ($1.3 billion). Access to external commercial financing is expected to remain limited during the program, with a small 'Panda' bond issuance anticipated in fiscal year 2026, ahead of a gradual return to the Eurobond/Global Sukuk market assumed in fiscal year 2027, reflecting a restoration of policy credibility. The Fund has also lowered the exports projection to $31.305 billion for the outgoing fiscal year 2024-25 against the programmed $31.751 billion. Imports are projected to increase to $57.634 billion in the current fiscal year 2024-25 compared to the programmed $57.180 billion. Copyright Business Recorder, 2025
Business Recorder
19-05-2025
- Business
- Business Recorder
IMF lowers GDP growth forecast to 2.6pc for Pakistan
ISLAMABAD: The International Monetary Fund (IMF) has revised downward GDP growth for Pakistan to 2.6 percent for the outgoing fiscal year 2024-25 from the October projection of 3.2 percent, based on the weaker activity in first half (H1) and broader global uncertainty. The Fund in its latest report 'First review under the Extended Fund Facility (EFF) arrangement, requests for modification of performance criteria, and request for an arrangement under the Resilience and Sustainable Facility (RSF)', noted;2.5 percent GDP growth in fiscal year 2024, growth slowed somewhat in H1, recording 1.3 percent and 1.7 percent (yoy) in fiscal year Q1 and Q2, respectively, reflecting lower yields from the major Kharif crops and still-subdued industrial activity. Current expenditure was as per the Fund program 18.9 percent of GDP while current projection is the same (even though the growth has been downgraded from the program projection) though for next year the projection is 17.8 percent however the realization of this would depend on achieving the projected growth rate of 3.6 percent. IMF lowers Pakistan's FY25 GDP growth forecast to 2.6% Public Sector Development Program was under the Fund program this year projected at 2.3 percent of GDP while the projection is now 2.5 percent however disbursements by the Planning Ministry do not lend credence to this upgrade. Defence was budgeted and disbursed 1.7 percent of GDP while for next fiscal year it is projected at 1.9 percent of GDP. Privatisation proceeds are budgeted at zero percent of GDP for the current year and for the next four years by the Fund. Output of major crops was disappointing in H1 and industrial activity has remained subdued, but based on recent high frequency indicators projected an acceleration in fiscal year 2025 H2 and thereafter. The Fund stated that inflation fell to 0.7 percent (yoy) in March driven by tight macro policies and, principally, lower food and energy prices. However, core inflation is still elevated at around 9 percent. For the outgoing fiscal year 2025 inflation is revised down, although it is projected to increase notably in the coming months due to adverse base effects, with a durable return to the target range (5–7 percent) expected during fiscal year 2026, provided policy remains appropriately tight. The current account deficit (CAD) for fiscal year 2025 is projected at about $0.2 billion (0.1 percent of GDP), helped by resilient exports and a stronger remittance outlook, as improved macro and FX stability has supported a rebound in remittance inflows through formal channels. Over the medium term, the CAD is expected to widen modestly to around 1 percent of GDP as imports rebound. Gross (net reserves were not specified) international reserves are expected to continue to strengthen, supported by financing committed by multilateral and bilateral creditors, as well as prospective RSF disbursements ($1.3 billion). Access to external commercial financing is expected to remain limited during the program, with a small 'Panda' bond issuance anticipated in fiscal year 2026, ahead of a gradual return to the Eurobond/Global Sukuk market assumed in fiscal year 2027, reflecting a restoration of policy credibility. The Fund has also lowered the exports projection to $31.305 billion for the outgoing fiscal year 2024-25 against the programmed $31.751 billion. Imports are projected to increase to $57.634 billion in the current fiscal year 2024-25 compared to the programmed $57.180 billion. Copyright Business Recorder, 2025
