Tuesday, August 05 2025

PSX hits record high, breaching 142,000-mark
The Pakis­tan Stock Exchange (PSX) reached an unprecedented milestone on Monday, with the benchmark KSE-100 index breaching the 142,000 mark for the first time. The rally was driven by optimism surrounding strong corporate earnings announcements expected this week, alongside a landmark tariff deal with the United States and growing expectations of a resolution to the circular debt crisis in the power sector. Positive performance in sectors such as cement, oil, and gas further bolstered investor confidence, propelling the index to its highest-ever closing level. Ahsan Mehanti from Arif Habib Corporation attributed the market’s surge to speculations ahead of major earnings announcements expected this week. The cement sector was a standout performer, buoyed by reports of record cement dispatches in July, which surged by 30pc year-on-year. Other contributing factors included strong corporate earnings, the favourable US tariff agreement, stability in the Pakistani rupee, the government’s resolve to address circular debt, and lower inflation for July. According to Topline Securities Ltd, the KSE-100 index closed at 142,098 points, marking a gain of 1,018 points, or 0.72pc, its highest-ever closing level. Positive sentiment was also bolstered by the Oil & Gas Development Company’s (OGDC) receipt of its first TFC interest payment of Rs 7.7bn, along with optimism about the upcoming financial results from the cement sector, driven by improved monthly performance. Key contributors to the market’s positive movement included Lucky Cement, Bank Al-Habib, Habib Bank, Hub Power, and Systems Ltd, which collectively added 716 points to the index. On the flip side, Packages Ltd, Engro Holdings, and Pakistan Petroleum lost 134 points.
Related news categories: business economic-indicators psx stock-exchanges

Overbilling probe sparks call for nationwide scrutiny
Confirming widespread overbilling and subsequent punitive action against relevant electricity officials in Lahore following a probe ordered by Prime Minister Shehbaz Sharif, the Power Division on Monday said the federal government cannot abolish electricity duty — as announced by the power minister — without the consent of the provincial governments. Testifying at a public hearing held by the National Electric Power Regulatory Authority (Nepra), Additional Secretary for Power Mehfooz Bhatti reported that an inquiry ordered by the prime minister into overbilling complaints against Lahore Electric Supply Company (Lesco) had been completed and action had also been taken against those responsible. Mr Bhatti said the inquiry report had been submitted to the prime minister and, hence, he would refrain from discussing the matter until its recommendations were processed through relevant channels and formally presented before the regulator.
Related news categories: business economic-indicators power-gen-dist

Procedures notified for collection of tax on digital transactions
The Federal Board of Revenue (FBR) has issued new procedures to govern the registration of e-commerce sellers and the collection of tax on digital transactions. These measures are part of a broader effort to bring the retail market into the tax net and ensure tax compliance for digitally ordered goods and services. The FBR has released Income Tax Circular No. 01 and Sales Tax Circular No. 02, which aim to streamline the process of assigning National Tax Numbers (NTNs) to e-commerce retailers and to implement a practical withholding tax system. Under the new regime, all payments received for digitally ordered goods or services — whether via an online marketplace (OMP) or a website — will be subject to tax, with the introduction of Section 6A to tax domestic e-commerce transactions.
Related news categories: business economic-indicators misc

FBR sets safeguards against sales tax fraud arrests
Amid mounting pressure from the business community over sweeping powers granted to tax officials under Sections 37A and 37B of the Sales Tax Act, the Federal Board of Revenue (FBR) has introduced a procedural framework to regulate arrests in tax fraud cases, providing safeguards to prevent misuse. The move follows a nationwide strike by traders on July 19 and unsuccessful talks with SAPM Haroon Akhtar. The protest stemmed from concerns over arbitrary arrests and harassment by tax officers. In response, top business leaders met with Field Marshal Asim Munir, who assured them that no undue hurdles would be placed in the way of lawful business activity. Sales Tax Circular No. 02 outlines a structured FBR process governing inquiries, investigations, and arrests in tax fraud cases. The framework introduces multiple layers of approval and clearly defines prosecutable offences to minimise discretionary action.
Related news categories: business economic-indicators misc

Sugar mills seek hearing delay
The Competition Commission of Pakistan (CCP) has postponed hearings in the sugar cartelisation case involving 79 sugar mills and the Pakistan Sugar Mills Association (PSMA) after a request was made citing the unavailability of legal counsel due to the Supreme Court’s summer recess. The PSMA and its member mills sought rescheduling of the rehearing originally slated for Aug 4-7, arguing that their legal representatives were on leave. The CCP has now fixed the hearings for Sept 22-25, allowing a one-time adjournment in line with directions from the Competition Appellate Tribunal (CAT), which had earlier instructed the CCP to hold day-to-day proceedings. In a statement, the CCP made it clear that no further delays would be entertained, warning that repeated adjournment requests or non-appearance may result in ex-parte proceedings.
Related news categories: business economic-indicators misc sugar