Wednesday, July 16 2025

PSX slips as strike worries prompt sell-off
The Pakis­tan Stock Exchange (PSX) came under pressure on Tuesday, with the benchmark KSE-100 index snapping its upward streak as investors opted for profit-taking amid mounting concerns over sweeping taxation measures and a nationwide strike call by trade and industry on July 19. The session opened on a positive note, driven by continued bullish sentiment from the previous day, as heavyweight banking stocks led early gains. According to Topline Securities Ltd, the index surged to an intraday high of 1,245 points before sentiment turned sour in the second half. Selling pressure intensified as investors sought to lock in gains, triggering a broad-based sell-off. The index swung sharply during the session, touching an intraday low of 676 points before settling at 135,939.87 — down by 562.67 points or 0.41pc. The day’s movement reflected a tug-of-war between optimism and caution.
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Aurangzeb, traders begin talks to ease tensions
In a bid to preempt countrywide unrest, Finance Minister Muhammad Aurangzeb on Tuesday constituted a high-level committee to hold consultations with traders on budgetary measures aimed at documenting the economy. The multi-stakeholder committee will conduct a 30-day consultation process to develop a consensual and actionable proposal, which will be submitted to Prime Minister Shehbaz Sharif and the federal cabinet. According to sources present at the meeting, officials from various ministries clarified that the new tax amendments are primarily intended to curb large-scale sales tax fraud. The committee will only consider trader concerns that are deemed genuine and substantiated, the officials added.
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Moody’s urged to improve Pakistan’s credit rating
Finance Minister Muhammad Aurangzeb on Tuesday urged the leading US rating agency — Moody’s — to improve Pakistan’s credit rating and help its return to international capital markets at favourable conditions. Pakistan has been postponing the launch of international bonds since July 2021 due to challenging macroeconomic conditions and resultant poor credit rating and relying mostly on time deposits from friendly nations to meet external liabilities and stay afloat. Moody’s had upgraded Paki­stan’s credit rating by one notch to Caa2 from Caa3 (downgraded in February 2023 due to suspension of the IMF programme) and changed its outlook to positive from stable for improving macroeconomic conditions, including liquidity and external position from very weak levels.
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Govt hikes petrol price by Rs5.36, high-speed diesel by Rs11.37
The federal government on Tuesday hiked the price of petrol by Rs5.36 per litre and that of high-speed diesel (HSD) by Rs11.37 for the next fortnight. A press release from the Finance Division said the revised prices were based on recommendations by Ogra and concerned ministries. The new petrol price is Rs272.15 per litre and Rs284.35 for HSD. The press release did not mention any changes in the prices of kerosene and light diesel oil. According to informed sources, the ex-depot price of petrol was projected to rise by about two per cent to Rs272.04 per litre, while HSD was likely to see a 2.5pc increase to approximately Rs279.48 per litre. Widely used in motorcycles, rickshaws, and private vehicles, petrol has a direct impact on the budgets of middle- and lower-income households.
Related news categories: business economic-indicators oilgas-marketing

ADR drops to 38pc after tax condition withdrawn
Pakistan’s banking sector has reverted to its traditional model as the advance-to-deposit ratio (ADR) dropped to 38.1pc in June 2025, down from 50pc in December 2024, reflecting a significant slowdown in lending activity. The surge in lending last year was driven by a government policy announced in the FY25 budget, which imposed an incremental tax of up to 15pc on banks that failed to maintain a minimum ADR of 50pc. The move was aimed at encouraging private sector credit and boosting economic growth, which had remained below desired levels. The policy triggered an aggressive response from banks. Some major institutions reportedly advised large depositors to withdraw funds or face penalties as banks scrambled to meet the new threshold. In a bid to comply, banks significantly increased lending to Non-Banking Financial Institutions (NBFIs), with loans reaching a record Rs1tr by December 2024 — 130pc higher than the total credit stock of NBFIs at the time.
Related news categories: business economic-indicators misc