Thursday, April 16 2026

PSX rallies as Saudi Arabia deposits $2bn, KSE-100 gains over 2,000 points
Buying rally continued at the Pakistan Stock Exchange (PSX) with the benchmark KSE 100 index gaining over 2000 points during the opening minutes of trading on Thursday. At 9:44am, the benchmark index was hovering at 170,828.25 points, up by 2,318 points or 1.38 percent. Earlier today, the State Bank of Pakistan (SBP) said it had received funds of US$ 2 billion from Ministry of Finance, Kingdom of Saudi Arabia. Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected in the coming week. Meanwhile, index heavy automobile, cement, food and personal care products and insurance sectors traded in the green. On Wednesday, the benchmark KSE-100 Index gaining 2,885.10 points or 1.74 percent to close at 168,519.94 points.
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KSA bolsters Pakistan’s finances
Saudi Arabia will provide USD3 billion in additional support for Pakistan to help the South Asian nation bridge a multi-billion dollar gap in its finances linked to an upcoming debt repayment to the United Arab Emirates. The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional USD5 billion deposit for a longer period, Finance Minister Muhammad Aurangzeb told reporters in Washington. The move underlines a deepening relationship between Riyadh and Islamabad, cemented last year by a mutual defence pact treating aggression against either as an attack on both. “We can confirm that Saudi Arabia has agreed to a USD3 billion deposit with Pakistan to support their balance of payments,” a Saudi Ministry of Finance spokesperson told Reuters.
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IMF cautions countries against broad fuel subsidies
The war in the Middle East has intensified strains on an already fragile global fiscal situation, with higher interest rates and rising energy prices already fuelling calls for support from emerging markets and developing economies, the International Monetary Fund said on Wednesday in its Fiscal Monitor report. Rodrigo Valdes, the IMF’s new fiscal affairs chief, said countries should skip fuel subsidies to help their citizens deal with a shortage of oil and the corresponding surge in energy prices and opt instead for targeted, temporary cash transfers that do not obscure higher prices and keep demand high. “We don’t have oil. We don’t have energy. Energy needs to be more expensive for everybody, so that the adjustment happens and we consume less,” Valdes told Reuters in an interview.
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Auto sector’s struggle persists despite growth potential
Pakistan’s automotive sector continues to face structural challenges, including policy inconsistency, low capacity utilization, and rising reliance on used car imports, even as it retains significant growth potential within the regional market. These issues were discussed during a recent industry engagement hosted by Indus Motor Company, where company leadership shared insights on market trends and policy direction with a group of media representatives. During the session, Chief Executive Officer of Indus Motor Company, Ali Asghar Jamali, presented insights into Pakistan’s automotive performance relative to regional peers. Pakistan remains one of only 16 countries worldwide capable of manufacturing passenger cars, light commercial vehicles, trucks, and buses.
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Pakistan weighs spot LNG
Pakistan is considering buying liquefied natural gas (LNG) on the spot market to offset supply disruptions caused by the Iran war but would favour government-to-government deals to avoid having to pay steep premiums, its petroleum minister said. Qatar’s force majeure has forced Pakistan to make costly spot purchases or find alternative fuels ahead of summer demand. Spot LNG cargoes have surged to USD20 to USD30 per mmBtu amid the Middle East conflict, Ali Pervaiz Malik, the petroleum minister told Reuters on Wednesday. Purchases would depend on whether prices are acceptable to the power sector, including under existing government-to-government arrangements with Azerbaijan’s SOCAR.
Related news categories: business economic-indicators oilgas-marketing