Thursday, January 15 2026

PSX succumbs to profit-taking pressure
The Pakistan Stock Exchange (PSX) registered a notable fall on Wednesday as caution gripped investors amid escalating geopolitical tensions, particularly between the US and Iran and fears of a potential US strike on Tehran that lifted oil prices The benchmark KSE-100 index dropped 1,381.69 points, or 0.75%, to close at 182,569.82, after swinging between the intra-day high of 184,727 and the low of 182,370. Profit-booking after recent gains kept market sentiment subdued for almost throughout the session. Analysts were of the view that investors locked in profits at higher levels and shied away from taking fresh exposure as regional uncertainty deepened. KTrade equities trader Ahmed Sheraz observed that the PSX closed under pressure, with the benchmark KSE-100 index settling at 182,570, down 1,382 points.
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Currency in circulation at Rs10.9tr
Pakistan's broad money (M2) supply rose to Rs41.63 trillion, registering a week-on-week increase of Rs346 billion. On a fiscal year-to-date basis, M2 has expanded by Rs838 billion, while the calendar year-to-date growth stands at Rs346 billion. On an annual basis, the broad money recorded a substantial rise of Rs6.01 trillion, supported by higher deposit mobilisation and balance-sheet expansion within the banking sector, according to data compiled by Optimus Capital Management. A closer look at the composition of money supply shows that total bank deposits climbed to Rs30.66 trillion, increasing by Rs367 billion during the week and by Rs4.22 trillion compared to the same period of last year.
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Pakistan cuts industrial power subsidy burden by Rs123bn
The Power Division has announced that the industrial cross-subsidy burden has been reduced from Rs225 billion (Rs8.9 per unit) in March 2024, when the current government took charge, to Rs102 billion (Rs4.02 per unit) now, which represents a substantial reduction of Rs123 billion. The industrial tariff, including tax, dropped from Rs62.99 per unit in March 2024 to Rs46.31 per unit by December 2025, while the national average tariff decreased from Rs53.04 to Rs42.27 per unit, the division said in a statement issued on Wednesday. To reduce electricity tariffs, it mentioned, the government had terminated operations of inefficient power plants and renegotiated contracts with the independent power producers (IPPs). "These actions have resulted in tariff reductions and further negotiations with the remaining power producers are in progress."
Related news categories: business economic-indicators power-gen-dist

EU Green Deal rules put textile exports at a crossroads
Pakistan's textile sector has entered 2026 at a defining juncture, with its long-standing export model facing mounting pressure from tightening global regulations, intensifying competition and domestic cost constraints. After a modest recovery in 2025 that lifted textile exports to around $17.85 billion, industry leaders now warn that the sector's preferential access to European markets under the GSP Plus regime is increasingly at risk. These concerns dominated discussions at the Global Procurement and Supply Chain Summit (GPS 2026), held in Karachi, where policymakers, procurement leaders and textile executives assessed the evolving global trade environment. Addressing the summit as chief guest, Shahbaz H Syed, President and CEO of EXIM Bank of Pakistan, described the current environment as a "perfect storm", driven by rising energy costs, aggressive sustainability regulations and redirected global supply flows.
Related news categories: business economic-indicators textile-composite textile-spinning textile-weaving

Govt shifting focus to growth
Deputy Prime Minister Ishaq Dar said on Wednesday that International Monetary Fund (IMF) programmes were generally anti-growth, adding that the focus of Prime Minister Shehbaz Sharif's government from now onwards would be on increasing national output. Dar's speech at the Pakistan Policy Dialogue reflected growing pressure on the government to allow the economy to grow after a prolonged period of stabilisation, which has resulted in the highest unemployment and poverty levels in decades. "After achieving stability, we will now move towards economic growth and will engage the IMF as well," said the deputy prime minister and four-time former finance minister in his closing remarks at the event.
Related news categories: business economic-indicators misc