Tuesday, August 26 2025

PSX loses 677 points on IMF concerns
The Pakis­tan Stock Exchange (PSX) took a dip on Monday, as investors opted to take profits amid growing concerns over the release of the third tranche of the International Monetary Fund (IMF) loan. The market saw a volatile session, with the benchmark KSE-100 index fluctuating sharply before closing down. Ahsan Mehanti of Arif Habib Corporation attributed the bearish market performance to institutional profit-taking in an overbought market. He highlighted the impact of flat government bond yields, foreign outflows, concerns over external debt, and losses in state-owned enterprises (SOEs). Furthermore, uncertainty surrounding the outcome of the IMF’s next review, particularly the unmet conditions for provincial tax collection, added to investor anxiety. Topline Securities reported that the bourse began the “rollover week” on a volatile note. After hitting an intraday high of 586 points, the index dropped sharply by 735 points, closing at 148,815—down by 677 points, or 0.45 per cent. Investors opted for cautious trading, booking gains amid the uncertainty.
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Pakistan, Bangladesh forge stronger economic ties
Pakistan’s Commerce Minis­ter Jam Kamal’s recent visit to Bangladesh marked a pivotal step in resetting long-term bilateral relations, with the signing of several key agreements aimed at enhancing regional connectivity and investment. The most significant outcome was the signing of a Memorandum of Understanding (MoU) to establish a joint working group on trade. This new forum will bring together commerce officials from both nations to explore opportunities for boosting bilateral commerce, trade, and investment. Meanwhile, Foreign Minister Ishaq Dar’s trip to Dhaka also produced agreements on diplomatic visa waivers and institutional cooperation between foreign service academies, underscoring the growing diplomatic and economic momentum between the two countries.
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SECP rejects auditor’s findings of unlawful pay, perks
The Securities and Exchange Commission of Pakistan (SECP) on Monday challenged the Auditor General of Pakistan’s (AGP) audit report 2024-25, which alleged that pay and allowance increases for its senior management were made unlawfully and without due process. In challenging the report, the commission also claimed that the auditor general’s office lacked the authority required to conduct the financial scrutiny. The move by the SECP follows similar pushback against the auditor general from the Pakistan Telecommunication Company Ltd and the Pakistan Telecommuni­cations Authority. The audit objections noted that the salary and perks of the SECP chairman and commissioners were raised for the two previous fiscal years. The report also mentioned that the SECP failed to deposit revenues and surplus balances into the Federal Consolidated Fund.
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Flows from abroad surge 59pc in July
Pakistan began the new fiscal year with foreign inflows of $695 million in July, a 59 per cent increase compared to the same month last year. This boost came from $675m in foreign loans and $19m in grants, reflecting a significant rise from last year’s $426m in loans and $10.5m in grants. The uptick in inflows comes after the finalisation of Pakistan’s Extended Fund Facility (EFF) with the International Monetary Fund (IMF), which had been delayed following the approval of the federal budget. Despite this, the government was able to achieve robust growth in both loan and grant categories in July. The target for foreign inflows in the current fiscal year has been set at $19.9 billion, slightly higher than the $19.4bn target for the previous year. This includes $6.4bn from multilateral and bilateral lenders, $400m in international bonds, $3.1bn in foreign commercial loans, as well as substantial time deposits from Saudi Arabia and China.
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Senate panel questions tariff hike by Jazz
The Senate Standing Committee on Information Technology and Telecommunication was informed on Monday that there was no evidence of cartelisation in Pakistan’s telecom sector. The committee sought clarification from the Pakistan Telecommunication Authority (PTA) regarding an audit report related to a tariff increase by the country’s largest telecom company, Jazz. PTA Chairman retired Major General Hafeez Ur Rehman assured the committee that no cartelisation had been allowed within the sector. As the significant market player (SMP), Jazz must seek approval from the PTA before making any changes to its tariff rates, he explained. Senator Palwasha Khan, chairperson of the committee, questioned how Jazz had managed to collect over Rs6 billion more from its customers. In response, Rehman clarified that Jazz had raised its tariffs by 19pc in 2024, but this increase was regulated by the PTA to maintain market balance.
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