Friday, February 21 2025

Buying spree continues as PSX gains 397 points
Pakistan Stock Exchange (PSX) on Thursday continued its buying spree as investor confidence grew on the back of robust corporate earnings, which helped KSE-100 index notch up gains of nearly 400 points. The bourse remained in the green for most of the day, reaching its intra-day high of 114,202, reflecting strong gains compared to the prior session. Strong performance by key sectors such as cement and banking propelled the index higher. However, the current account deficit of $420 million for January, coupled with the increase in government bond yields, caused jitters in the market. As a result, selling pressure in the second half wiped off most of the day's gains. Among major economic news, the finance minister stated, "We need to bring other sectors including agriculture, real estate, retail and wholesale into the tax net."
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IMF to visit Pakistan for talks on $1b climate financing
An International Monetary Fund (IMF) mission will arrive in Islamabad next week to discuss around $1 billion in climate financing for Pakistan, an adviser to the Pakistan finance minister said on Thursday. Advisor to Finance Minister Khurram Schehzad told Reuters that the mission would visit from February 24 to 28 for a “review and discussion” of climate resilience funding. The disbursement will take place under the Fund’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy. Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation’s vulnerability to climate change. The country’s economy is on a long path to recovery after being stabilised under a $7 billion IMF Extended Fund Facility it secured late last year.
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Gold extends winning streak, hits new peak
Gold prices in Pakistan continued their upward momentum, touching new highs on Thursday, while mirroring the rise in international markets. In the local market, the price of gold per tola rose Rs1,000 to an all-time high of Rs309,000, while 10-gram gold rose Rs857 to settle at Rs264,917, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). The increase follows a Rs3,800 jump per tola on Wednesday, which had already pushed prices to a record high. On the global front, the gold rate also saw an uptick, rising $9 to $2,953 per ounce, including a $20 premium, as per the APSGJA. Analysts point to several factors that are fueling this trend. A weaker US dollar, influenced by the increasing use of alternative currencies like the Chinese yuan in oil trade and the ongoing US-led trade tensions, has enhanced gold's appeal as a hedge against currency depreciation.
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Logistics sector sees $36b losses on offline trade
Fostering sea-borne trade through digitalisation, experts and professionals in ports, shipping, and logistics have raised concerns that Pakistan's logistics industry faces annual losses of approximately $36 billion due to offline trade, which is also contributing to the loss of two to three million jobs in the sector. They shared these views during the 'Pakistan Logistics & Shipping Summit 2025: Navigating Global Trade Dynamics', organised by the Smart Entrepreneur Society (SES) at a local hotel on Thursday. They stressed that real-time solutions, including processing, tracking, and other digital facilities, are essential to tapping into growth opportunities and competing with the developed world. On top of that, they noted that while government processes have become nearly real-time, a significant gap remains, with approximately 70% of private sector activities, including those of freight forwarders and related service providers, still relying on outdated and manual methods.
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Digital economy project gets ECC nod
The government plans to introduce the second package of regulatory reforms by March this year to ensure ease of doing business. While discussing a grant for the Digital Economy Enhancement Project (DEEP) component-II, the Economic Coordination Committee (ECC), in a recent meeting, inquired from the Board of Investment (BOI) about the measures taken to reform the regulatory regime from the perspective of ease of doing business. It was informed that the first package of reforms had been prepared on a fast-track basis, which would be placed before the cabinet in due course. It was also told that the second package of reforms would be introduced by March 2025. The ECC emphasised that regulatory reforms should be implemented alongside other initiatives to enhance investors' confidence.
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