कारोबार

The first trading session of August brought renewed optimism to the Pakistan Stock Exchange (PSX), where investors returned with aggressive buying, driving the benchmark KSE-100 Index sharply higher. The bullish momentum followed US President Donald Trump’s announcement regarding the commencement of talks with Iran, a development that boosted investor confidence and eased concerns over escalating geopolitical tensions. During early trading, the KSE-100 Index surged by 2,708 points, climbing to 178,802 points as buying activity intensified across several major sectors. Market participants attributed the rally to improved global sentiment, with hopes that diplomatic engagement between Washington and Tehran could reduce regional tensions and support international financial markets. Analysts said investors responded positively to the possibility of a more stable geopolitical environment, which could help stabilize global energy prices and encourage foreign investment in emerging markets, including Pakistan. Strong buying interest was witnessed in leading banking, energy, cement, and fertilizer stocks, contributing to the market’s upward trajectory. Despite the robust performance of the PSX, Asian equity markets presented a mixed picture. Japan’s benchmark Nikkei Index declined by 1.5 percent amid continued investor caution, while South Korea’s Kospi recorded a steeper fall of 5.25 percent, reflecting selling pressure in major technology and export-oriented shares. In contrast, Hong Kong’s Hang Seng Index remained in positive territory, posting a modest gain of 0.1 percent as investors welcomed signs of easing geopolitical uncertainty.

Global oil prices recorded a significant decline after US President Donald Trump announced that the United States would halt its planned military strikes on Iran, easing concerns over a potential escalation in the Middle East and reducing fears of disruptions to global energy supplies. In international trading, crude oil prices fell by more than $4 per barrel as investors reacted positively to the announcement, leading to a broad sell-off in oil futures. Brent crude, the international benchmark for oil prices, dropped by $4.08 to settle at $83.85 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude declined by $4.01, bringing its price down to $80.66 per barrel. Market analysts said the sharp decline reflected improving investor confidence after the reduction in geopolitical tensions between Washington and Tehran. The possibility of avoiding direct military confrontation eased concerns about supply disruptions from one of the world’s most strategically important oil-producing regions. The Middle East plays a critical role in global energy markets, and any signs of conflict involving Iran often trigger volatility in crude oil prices. Investors closely monitor developments in the region due to the importance of key shipping routes, including the Strait of Hormuz, through which a significant portion of the world’s oil exports passes. Last month, oil prices surged by more than 20 percent after renewed US military action against Iran and reports that Tehran-backed forces targeted several oil tankers near Oman. Those incidents heightened fears of supply interruptions, driving both Brent and WTI crude to their highest levels in months. With the latest announcement from President Trump, traders have shifted their focus toward the possibility of improved regional stability. However, energy market experts caution that oil prices are likely to remain volatile, as any renewed geopolitical tensions or disruptions to oil transportation routes could quickly reverse the recent decline.

The Ministry of Privatisation has established a high-level Technical Committee to examine the feasibility of dividing the Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) into two or three smaller power distribution companies before their proposed privatisation, according to informed sources. The move is part of the government’s broader strategy to reform Pakistan’s power distribution sector and make state-owned electricity companies more attractive for private investment. LESCO and MEPCO currently serve the largest geographical areas and consumer bases among the country’s distribution companies (DISCOs), prompting officials to assess whether restructuring them into smaller entities could improve operational efficiency and facilitate the privatisation process. Technical Committee Constituted The committee is headed by Sajid Akram, Adviser (Power) at the Privatisation Commission. Other members include Ghulam Rasool, Joint Secretary at the Privatisation Commission; Imran Hafeez, Additional Director Tariff at the National Electric Power Regulatory Authority (NEPRA); and Abid Lodhi, Managing Director of the Power Planning and Monitoring Company (PPMC). The committee has been tasked with conducting a comprehensive review of the proposal and submitting recommendations to the government after evaluating its technical, operational and strategic implications. Weak Performance Raises Concerns Officials familiar with the matter said that both LESCO and MEPCO have consistently faced operational challenges, particularly in controlling electricity theft, reducing transmission and distribution losses, and improving bill recovery. These issues have affected their financial performance and have remained a major concern for policymakers pursuing reforms in the power sector. Recent audit reports for the fiscal year 2024-25 also highlighted unsatisfactory performance by both companies, reinforcing the need for structural reforms before moving ahead with the privatisation programme. MEPCO: Pakistan’s Largest Distribution Company MEPCO was incorporated in 1998 as a public sector company and operates under a permanent electricity distribution licence issued by NEPRA. The company is wholly owned by the Government of Pakistan through the Ministry of Energy. Serving nearly 8.76 million consumers across 13 districts of southern Punjab, MEPCO is the country’s largest electricity distribution company in terms of customer base. Its extensive network includes more than 82,000 kilometres of distribution lines and over 780 grid stations, supplying electricity across a vast region bordering three provinces. The company has initiated several modernisation projects, including the deployment of Advanced Metering Infrastructure (AMI), commonly known as smart metering, and digital billing systems aimed at improving transparency, reducing losses and enhancing customer services. LESCO Serving Over Seven Million Consumers LESCO also began operations in 1998 and supplies electricity to approximately 7.05 million consumers across Lahore, Kasur, Sheikhupura, Nankana Sahib and Okara. Its consumer base includes domestic, commercial, industrial, agricultural and bulk supply customers. The company’s operational network is divided into eight circles supervised by Superintending Engineers and 41 divisions managed by Executive Engineers to oversee field operations. In recent years, LESCO has accelerated efforts to modernise its infrastructure through the installation of smart meters, with plans to convert its entire consumer base to the Advanced Metering Infrastructure by 2029. However, the company continues to face significant operational hurdles, including shortages of transformers and electricity meters, resulting in delays in providing new connections and replacing faulty equipment. These issues have drawn criticism from regulators and consumers alike. Committee’s Terms of Reference According to the approved Terms of Reference (ToRs), the Technical Committee will: Assess the feasibility of splitting LESCO and MEPCO into two or three smaller distribution companies. Examine the potential advantages and disadvantages of such restructuring in line with the National Electricity Plan, the government’s Power Policy and the ongoing privatisation programme. Review whether similar committees were constituted in the past and analyse their findings, recommendations and implementation status. The committee’s recommendations are expected to play an important role in determining whether the government proceeds with restructuring the two major DISCOs before offering them for privatisation.

Pakistan’s private sector secured bank financing worth Rs1.138 trillion during the fiscal year 2025-26, marking the highest level of private-sector credit in the last four years, according to Adviser to the Finance Minister Khurram Shahzad. In a statement, Shahzad said the sharp increase in lending reflects improving economic conditions, stronger business confidence, and the government’s efforts to encourage investment and industrial growth. He noted that private-sector credit expanded by approximately 15 percent during the fiscal year compared to the previous year. The adviser highlighted that greater access to financing has played a key role in supporting business expansion and productive economic activities across the country. He added that around 89 percent of the newly disbursed loans were directed toward major productive sectors, including manufacturing, wholesale and retail trade, and agriculture. According to Shahzad, the manufacturing sector alone received fresh financing of Rs657 billion, enabling industries to expand production capacity, modernize operations, and meet growing market demand. He said the significant flow of funds into manufacturing demonstrates renewed confidence in Pakistan’s industrial sector. He further stated that increased financial support for the trade and agriculture sectors has contributed to higher production, stronger commercial activity, and improved investment by private businesses. Enhanced credit availability, he said, is helping enterprises expand operations, create employment opportunities, and strengthen overall economic performance. Shahzad described the record lending as a positive indicator of the country’s economic recovery, saying that rising private-sector borrowing reflects improving investor sentiment and greater confidence in Pakistan’s financial system. He added that sustained access to bank financing would remain essential for maintaining economic momentum, boosting productivity, and supporting long-term, sustainable growth.

Pakistan’s annual inflation eased to single digits in July 2026, with the latest official figures showing a noticeable decline in price growth compared to the previous month. However, economists cautioned that inflationary pressures have not disappeared, as higher fuel costs and other economic challenges continue to weigh on the outlook. According to data released by the Pakistan Bureau of Statistics (PBS) on Monday, the Consumer Price Index (CPI) recorded an annual inflation rate of 9.2% in July 2026. The reading marked a significant decline from 11.1% in June, although it remained considerably higher than the 4.1% recorded in July 2025. On a monthly basis, consumer prices increased by 1.2% during July, reversing the 0.3% decline witnessed in June. In comparison, monthly inflation had risen by 2.9% in July last year. Urban and rural inflation The PBS data showed that inflation in urban areas slowed to 8.7% year-on-year in July, down from 11.2% in June. During the same month last year, urban inflation had stood at 4.4%. Month-on-month, urban prices climbed 1.2%, compared to a 0.5% decline in June and a 3.4% increase recorded in July 2025. Meanwhile, rural inflation also moderated, with the annual rate easing to 9.9% in July from 10.9% a month earlier. Rural inflation had been 3.5% in the corresponding month of last year. On a monthly basis, rural prices increased by 1.2%, compared with no change in June, while July 2025 had witnessed a 2.2% monthly increase. Government projects inflation to remain elevated The Finance Division had earlier projected inflation to remain between 9% and 10% in July, warning that rising international oil prices could continue to exert pressure on domestic prices. The ministry’s latest economic outlook also highlighted concerns over external investment, noting that Pakistan’s foreign direct investment (FDI) fell by 33.9% during the last fiscal year, declining from $2.48 billion in FY2024-25 to $1.64 billion in FY2025-26. SBP keeps policy rate unchanged Last week, the State Bank of Pakistan’s Monetary Policy Committee maintained the benchmark policy rate at 11.5% during its first monetary policy meeting of the new fiscal year. Speaking after the decision, SBP Governor Jameel Ahmad said inflation was expected to decline in July and expressed optimism that it would gradually move towards the central bank’s target. He said the State Bank expects inflation to settle within the upper end of its 5-7% target range by the close of the current fiscal year. Analysts see base effect behind slowdown Market analysts had largely anticipated inflation returning to single digits in July, though many argued that the improvement was mainly due to favourable statistical base effects rather than a broad-based easing in price pressures. Analysts at Ismail Iqbal Securities estimated July inflation at 9.3%, saying the decline reflected comparison with a higher base from the previous year rather than a sustained reduction in inflationary momentum. Similarly, JS Global projected headline inflation at 9.1% for July, indicating that while inflation has eased, underlying economic pressures continue to pose risks for the months ahead. The latest inflation reading provides some relief for consumers and policymakers, but economists believe the path ahead will depend on global commodity prices, exchange rate stability, energy costs and the government’s fiscal management during the current financial year.

Gold prices moved higher across Pakistan on Monday, tracking an upward trend in the international bullion market, according to the latest rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The price of 24-karat gold per tola increased by Rs1,700, taking the new rate to Rs428,436. The recovery comes after a sharp decline recorded in the previous trading session, when the precious metal had fallen by Rs3,700 per tola to settle at Rs426,736 on Saturday. The price of 10 grams of 24-karat gold also witnessed an increase, climbing by Rs1,457 to reach Rs367,314 in local markets. Market analysts said the rise in domestic gold prices reflects the positive movement in global bullion markets, where investor demand strengthened amid ongoing uncertainty surrounding the global economic outlook and expectations regarding interest rate policies. In the international market, the price of gold gained $17 per ounce, pushing the bullion rate to $4,060 per ounce, including a premium of $20. The increase in global prices was mirrored in Pakistan’s local market, where gold rates are largely influenced by international trends and fluctuations in the value of the Pakistani rupee against the US dollar. Meanwhile, silver prices also registered a notable increase. The price of silver per tola rose by Rs54, reaching Rs6,291 in the domestic market.

The sharp rise in fuel prices across the United Kingdom has triggered a significant increase in petrol theft, with filling stations now losing an estimated £200,000 worth of fuel every day, according to media reports. Petrol station operators have reported a growing number of “drive-off” incidents, where motorists fill their vehicles with fuel and leave without making payment. The trend has become increasingly common as higher fuel costs continue to put pressure on household budgets. Reports indicate that the overall financial impact of fuel theft has climbed by 48 percent following the recent surge in petrol and diesel prices. Retailers say the increase has added to the challenges already facing fuel station businesses, many of which are struggling with rising operating costs. The spike in fuel prices followed heightened tensions during the Iran conflict, when global oil markets experienced sharp volatility. During that period, the price of petrol reportedly increased by 27 pence per litre, while diesel prices rose by 37 pence per litre, making fuel significantly more expensive for consumers. Industry representatives warn that the consequences extend beyond financial losses. According to the Petrol Retailers Association (PRA), the rise in fuel prices has also been accompanied by an increase in abusive and aggressive behaviour directed at petrol station employees. Pump attendants have reportedly faced more verbal harassment and confrontations from frustrated customers. Fuel retailers are urging authorities to take stronger action against theft and improve security measures at filling stations. They also stress the need for greater protection for frontline staff, who are increasingly being exposed to difficult and sometimes dangerous situations while carrying out their duties.