Thursday, May 08 2025

PSX bleeds as fears of Indian military action come true
The Pakistan Stock Exchange (PSX) on Wednesday witnessed yet another bloodbath this year — tumbling by over 3,500 points — as investors’ fears of a military action by India against Pakistan came true last night. The Pakistani military brought down five Indian jets in retaliation for late-night strikes launched by its neighbouring country at six sites in Punjab and Azad Jammu and Kashmir. The benchmark KSE-100 index decreased by 6,560.82 points (5.78pc) to stand at 107,007.68 from the last close of 113,568.50 when the market opened at 9:30am. Due to the massive dip, the market was immediately suspended briefly. This marked the second-largest intra-day plunge (points-wise), ranking next to the nearly 8,700-point loss that followed the United States’ tariff announcement last month. However, the market started recovering slightly, reaching 112,457.37 points at around 10:34am, before closing at 110,009.02 points — 3,559.48 points (3.13pc) below yesterday’s close.
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Aurangzeb, PM’s privatisation czar in UK to woo investors
Finance Minister Muhammad Aurangzeb and Adviser to Prime Minister on Investment Muhammad Ali arrived in London on Tuesday for talks with global financial leaders as Pakistan looks to attract investors to boost the economy. The two-day visit will include engagements with top global investors and financial institutions to accelerate foreign direct investment, according to the Privatisation Commission. The two officials will meet executives from top investment advisory firms, including TTB Partners, STJ Partners; Deutsche Bank, Berenberg Bank; and asset manager Amundi Fund Group. The finance minister and the privatisation adviser will share Pakistan’s privatisation roadmap and its “potential as a hub for strategic, long-term investment”.
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Contingency plans reinforced to ensure operational resilience: finance ministry
Pakistan on Wednesday reinforced contingency plans to ensure operational resilience and secure communication lines across financial institutions following Indian attacks and the subsequent stock market dip. The Pakistani military brought down five Indian jets in retaliation for late-night strikes launched by its neighbouring country at six sites in Punjab and Azad Jammu and Kashmir. The plans were fine tuned at an emergency meeting presided over by Finance Minister Muhammad Aurangzeb through video link from London currently on a two day visit to promote investment opportunities in the country. The emergency meeting was convened to assess the current financial landscape in light of escalating regional tensions following the recent belligerent Indian aggression.
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More German companies entering Pakistan, says envoy
Business relations between Pakistan and Germany are gradually im­­proving, said German Consul General Rüdiger Lotz at an event held at the consulate on Tuesday. In the last six months, five new companies from Germany have entered Pakistan, noted Florian Walther, the Pakistan representative at the German Emirati Joint Council for Industry and Commerce. “The level of interest I’ve seen around trade, investment, and expansion into Pakistan has increased since I joined last year,” said Mr Walther in comments hours before India’s strikes on Pakistan. Giving a sneak preview of the AHK World Business Outlook to be released in the upcoming month, Mr Walther said the business sentiment in Pakistan was ‘cautiously upbeat’. Referring to a survey conducted about a month ago, he said firms in Pakistan feel confident about their own prospects but are reserved about their stance on the macroeconomic side.
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60-day ban on gold exports
Pakis­tan has enacted a 60-day ban on importing and exporting precious metals, jewellery, and gemstones to stabilise its foreign exchange reserves. The temporary ban was imposed by a Commerce Ministry Order suspending SRO760 of 2013, which governs the trade of precious metals. The restriction is linked to the recent impasse with India as a potential strategy to limit the flow of metals. Gold is still used as a traditional store of value and is an important part of Pakistan’s cultural, financial, and manufacturing sectors. Pakistan predominantly imports gold from the UAE, Switzerland and other gold-trading hubs. An official source told Dawn that the decision was made to limit the flow of gold and other precious metals to India via Dubai. “There is a big difference in the price of gold, which is a primary reason that encourages its exports to India,” a government official stated.
Related news categories: business economic-indicators misc