Friday, December 12 2025

PSX takes pause as profit-taking dominates
Profit-taking continued at the Pakistan Stock Exchange (PSX) for the second consecutive day on Thursday, which brought major sectors under selling pressure, dragging the benchmark KSE-100 index down by nearly 900 points. Following an initial spike to the intra-day peak of 170,301, the market dived early in the day and registered a notable decline before midday. Thereafter, the bourse steadied for a significant time, but it again dropped, touching the intra-day low of 168,548 just before close. Investors resorted to profit-booking at higher valuations, despite the settlement of power-sector debt worth Rs660 billion in the largest-ever transaction in Pakistan's capital market. The index crossed the 170k milestone for the second day in a row; however, it could not stay above that level for long.
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Forex reserves near $21b after IMF disbursement
Pakistan's foreign exchange reserves have crossed the $20 billion mark after the State Bank of Pakistan (SBP) confirmed the receipt of about $1.2 billion from the International Monetary Fund (IMF) under its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). In a statement issued on Thursday, the central bank said the IMF executive board, in its meeting on December 8, 2025, completed the second review of the EFF and approved a disbursement of SDR 760 million for Pakistan. The board also cleared the release of the first tranche of SDR 154 million under the RSF, aimed at supporting Pakistan's climate resilience and long-term macroeconomic stability. Subsequently, the SBP received a total of SDR 914 million, equivalent to roughly $1.2 billion, on December 10, 2025. The inflows will be reflected in the central bank's foreign exchange reserves data for the week ending December 12, 2025.
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Auto sales fall 11% in November
Pakistan's automotive market experienced a sharp monthly slowdown in November, with total car sales plummeting 11% to 15,442 units from October's 17,333, according to the Pakistan Automotive Manufacturers Association (PAMA). Despite the monthly dip, year-on-year figures paint a brighter picture, up 592% from November 2024's 10,163 units, buoyed by lower interest rates and moderating inflation that are gradually thawing consumer demand. According to data compiled by Topline Securities, the strong annual growth was supported by easing inflation, lower interest rates, and the arrival of new entrants that strengthened overall market competitiveness. While the MoM decline in auto volumes was primarily driven by customers delaying vehicle deliveries to next year to benefit from new-year registration, AHL viewed. Moreover, an 11% contraction in PSMC's sales also added to the overall decline, driven by lower volumes in models that have been phased out, including Ravi, Bolan, Every, and Wagon R.
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Russia looks for alternative banking channels with Pakistan
Russian Ambassador Albert P Khorev said on Thursday that they were exploring alternative banking channels with Pakistan to reduce reliance on Western payment networks. The two countries have long faced problems in making payments. They could not even implement the Pak Stream Gas Pipeline project owing to US and EU sanctions that derailed the entire plan. Pakistan and Russia are now working on drawing up a roadmap to address payment challenges. "We are working with Pakistan to find out alternatives for payments to lessen dependence on Western payment channels," the ambassador said while addressing a press conference. Regarding bilateral relations, he emphasised that they had so far been successful in moving ahead on different trade and energy matters. Pakistan and Russia have signed a memorandum of understanding (MoU) for the revival of Pakistan Steel Mills (PSM). "We are determined to revive it (PSM)," he stressed, adding that the two countries were studying the banking sector.
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Cabinet approves diversion of 45 LNG cargoes
The federal cabinet has approved the diversion of 45 liquefied natural gas (LNG) cargoes because of shrinking consumer demand in the country. The Economic Coordination Committee (ECC) has already approved the diversion of LNG cargoes. Its decision was tabled before the cabinet in a recent meeting, where the proposal was ratified. Sources told The Express Tribune that summaries titled "Update on Negotiation with State of Qatar for Mitigation of Surplus LNG" and "Operation of Two SNGPL-Based Urea Manufacturing Plants (Fatima Fertiliser and Agritech)" were placed before the cabinet for approval. During discussion, the Petroleum Division apprised the forum that owing to persistently thin demand for gas in the country, Pakistan State Oil (PSO) had surplus stock of imported LNG. It revealed that after negotiations with Qatar, an optimal and mutually agreed solution was reached, which allowed sale of up to 24 LNG cargoes on a net proceeds differential (NPD) basis in 2026.
Related news categories: business economic-indicators oilgas-marketing