कारोबार

The Pakistan Stock Exchange (PSX) witnessed a strong rally at the start of trading on Wednesday, with investors returning to the market after signs of easing geopolitical tensions in the Middle East lifted global sentiment. The benchmark KSE-100 Index climbed by more than 2,100 points during the opening session, reflecting renewed optimism among market participants. By around 9:30am, the KSE-100 Index was trading at 179,216.20 points, registering a gain of 2,132.98 points, or 1.20 percent, compared with the previous close. Market analysts attributed the sharp recovery to encouraging remarks from officials in Qatar and the United States, which strengthened expectations that diplomatic efforts could help prevent further escalation of the Iran conflict. The improved global outlook encouraged investors to increase buying in key sectors of the local market. The rally was broad-based, with significant buying interest recorded in automobile assemblers, cement manufacturers, commercial banks, fertiliser companies, oil marketing firms, power generation companies and refineries. Among the major gainers were heavyweight stocks such as Attock Refinery Limited (ARL), Mari Energies (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Pakistan State Oil (PSO), Habib Bank Limited (HBL), MCB Bank, Meezan Bank (MEBL) and United Bank Limited (UBL), all of which traded in positive territory during the early session. Investor confidence also received support from reports that Pakistan has approached China to refinance a $1.3 billion commercial loan. According to reports, the financing is expected to be finalised later this month after both sides complete negotiations on the terms and conditions. Market participants believe the move could help strengthen Pakistan’s external financing position and provide support to the country’s foreign exchange reserves. The strong opening followed a volatile trading session on Tuesday, when the stock market closed significantly lower after investors engaged in widespread profit-taking. Although the KSE-100 Index had reached an intraday high of 178,768.83 points, selling pressure emerged later in the session as traders locked in gains following Monday’s impressive rally. Global financial markets also contributed to the positive sentiment. Asian equities advanced sharply after strong corporate earnings in the United States and continued enthusiasm for technology stocks pushed Wall Street to fresh record highs. Investors were further encouraged by hopes that diplomatic efforts would help keep the Strait of Hormuz open, easing concerns over disruptions to global energy supplies and putting downward pressure on oil prices and bond yields. Japan’s Nikkei index surged around 3 percent, while South Korea’s benchmark gained more than 4 percent. The broader MSCI Asia-Pacific Index outside Japan also posted strong gains, with Chinese blue-chip shares moving higher as investors welcomed improving market sentiment across the region. In the United States, stock futures remained stable after the S&P 500 reached another record high. However, trading in some technology stocks remained mixed. Chipmaker AMD declined in after-hours trading despite reporting earnings that exceeded analysts’ estimates, as investors had anticipated even stronger results. Concerns also persisted over the heavy capital spending required to support artificial intelligence infrastructure, with rising borrowing costs continuing to weigh on parts of the technology sector.

Pakistan and the United States have reaffirmed their commitment to finalising a reciprocal trade framework at the earliest, signalling significant progress in negotiations aimed at strengthening bilateral trade, investment, and long-term economic cooperation. The renewed commitment was expressed during a virtual meeting held on Wednesday between Pakistan’s Finance Minister Muhammad Aurangzeb and United States Trade Representative (USTR) Ambassador Jamieson Greer. The two sides reviewed the progress made by their negotiating teams and discussed the remaining steps required to conclude the proposed agreement. According to an official statement, both countries acknowledged that negotiations have advanced substantially in recent months and reiterated their shared determination to complete the reciprocal trade framework as soon as possible. During the meeting, Finance Minister Muhammad Aurangzeb referred to the recent discussions held in Washington, D.C., and appreciated the constructive approach adopted by both negotiating teams. He said the steady progress reflects the mutual commitment of Pakistan and the United States to deepen economic ties and expand commercial cooperation. The finance minister stressed that maintaining the current momentum in negotiations is crucial for Pakistan’s broader economic agenda. He noted that a stronger trade and investment partnership with the United States would support Pakistan’s export-led growth strategy, improve economic resilience, attract foreign investment, and create new business opportunities for companies in both countries. Aurangzeb also highlighted the importance of continued collaboration with the US Export-Import Bank (EXIM Bank), saying enhanced financial cooperation could facilitate trade, encourage investment, and strengthen business-to-business engagement between the two countries. On the US side, Ambassador Jamieson Greer acknowledged Pakistan’s consistent engagement throughout the negotiation process and appreciated the progress achieved on key labour and regulatory reforms. He particularly welcomed Pakistan’s efforts to strengthen compliance with international labour standards, including measures related to preventing forced labour. The US trade representative reaffirmed Washington’s commitment to advancing bilateral trade discussions and expressed confidence that the remaining issues could be resolved through continued technical-level consultations between the two sides. Finance Minister Aurangzeb emphasised the need for close coordination between officials from both countries and called for accelerated technical discussions to build on the progress already achieved. He said timely completion of the agreement would open new avenues for economic cooperation and strengthen long-term bilateral relations. Both delegations expressed satisfaction over the pace of negotiations and agreed to continue regular engagement to finalise the outstanding elements of the reciprocal trade framework. The officials reaffirmed their shared objective of concluding the agreement in the near future, paving the way for stronger trade, investment, and economic collaboration between Pakistan and the United States.

Pakistan has formally approached China to refinance a $1.3 billion commercial loan, as the government continues efforts to strengthen the country’s foreign exchange reserves and meet its external financing obligations. According to officials familiar with the matter, negotiations between Pakistani and Chinese authorities are currently in progress to finalise the terms and conditions of the refinancing arrangement. Once the discussions are completed, the funds are expected to be disbursed later this month. The anticipated inflow is expected to provide much-needed support to Pakistan’s foreign exchange reserves, which remain under pressure due to significant external debt repayments and ongoing financing requirements. The refinancing would also help ease short-term liquidity pressures while supporting the country’s broader macroeconomic stability. Sources revealed that Pakistan repaid approximately $2.2 billion in external debt during July, including the settlement of the $1.3 billion Chinese commercial loan. The government’s request for refinancing is aimed at replacing the repaid amount, ensuring that reserve levels remain stable without placing additional strain on the country’s external account. The move comes as Islamabad continues to pursue a strategy of securing rollover agreements and refinancing facilities from friendly countries and international partners to meet its debt servicing commitments. Maintaining adequate foreign exchange reserves has remained a key priority for economic managers as Pakistan seeks to strengthen investor confidence and sustain financial stability. Economic experts believe that successful refinancing of the Chinese loan would provide temporary relief to the country’s external financing position while allowing policymakers greater flexibility in managing upcoming debt obligations. Officials said talks with Chinese financial institutions are progressing positively, although the final timeline will depend on the completion of documentation and agreement on financing terms. The refinancing request also reflects Pakistan’s ongoing efforts to manage its external debt profile prudently amid global economic uncertainties and higher financing costs in international markets.

Pakistan has taken a significant step towards developing its first indigenous lithium industry after the discovery of high-quality lithium reserves in Sindh’s Khairpur districtPakistan has taken a significant step towards developing its first indigenous lithium industry after the discovery of high-quality lithium reserves in Sindh’s Khairpur district, opening new opportunities for the country’s mineral and industrial sectors. In a major development, the Oil and Gas Development Company Limited (OGDCL) has entered into a strategic agreement with the Pakistan Institute of Nuclear Science and Technology (PINSTECH) to jointly develop technology for the commercial-scale extraction of lithium from geothermal brine. The collaboration follows the successful identification of high-grade lithium in samples collected from a well located in Khairpur. The discovery is being viewed as a breakthrough that could reduce Pakistan’s dependence on imported lithium while creating new investment and industrial opportunities. Under the agreement, OGDCL and PINSTECH will work together to design and develop advanced extraction technologies capable of recovering lithium efficiently from geothermal brine. The initiative is expected to pave the way for the establishment of a domestic lithium processing industry, supporting the growing global demand for the critical mineral. Lithium is considered one of the world’s most valuable strategic minerals due to its extensive use in rechargeable batteries for electric vehicles, mobile phones, laptops, renewable energy storage systems, and other advanced technologies. As global demand continues to rise, countries with commercially viable lithium resources are increasingly focusing on developing local production capabilities. Officials believe the partnership will strengthen Pakistan’s mineral exploration efforts, promote scientific research, and encourage technology-driven industrial development. The project is also expected to contribute to economic growth by attracting investment, generating employment opportunities, and enhancing the country’s position in the global critical minerals market.

Pakistan’s state-owned gas utility, Sui Northern Gas Pipelines Limited (SNGPL), has incurred losses worth billions of rupees after a major liquefied petroleum gas (LPG) air-mix project was shelved despite substantial investments in land, equipment, and infrastructure. The issue surfaced during a recent meeting of the Economic Coordination Committee (ECC), where the Ministry of Energy (Petroleum Division) presented a detailed briefing on the fate of the long-delayed project and proposed options for utilising the idle assets. The LPG air-mix initiative was originally approved between 2016 and 2018 under the Pakistan Muslim League-Nawaz (PML-N) government to provide gas to remote and mountainous regions where extending conventional natural gas pipelines was either technically challenging or financially unviable. The project envisioned the installation of 16 LPG air-mix plants, backed by an estimated government subsidy of around Rs16 billion. However, after the Pakistan Tehreek-e-Insaf (PTI) government assumed office, concerns over the project’s financial sustainability prompted a review. In March 2020, the Petroleum Division informed the ECC that the scheme required substantial government support and would place an additional financial burden on already struggling gas companies. The committee was presented with two options: continue the project with government subsidies or abandon it altogether. On March 25, 2020, the ECC decided to halt the installation of all LPG air-mix plants where construction had not yet commenced. Despite this decision, SNGPL had already acquired land, imported specialised equipment, and completed procurement for several planned facilities, resulting in significant sunk costs. The Petroleum Division later sought clarification regarding three proposed plants in Drosh, Ayun, and Chitral, where procurement activities had already been completed. In December 2020, the ECC directed SNGPL to discontinue these projects as well and dispose of the purchased land and equipment through an open and transparent process while minimising financial losses. According to officials, SNGPL subsequently issued tenders on three separate occasions to sell the unused assets. However, the company failed to receive any serious offers. As a result, the equipment remains stored in Lahore, while the sale of land is still awaiting approval from the Board of Revenue, Khyber Pakhtunkhwa. The Petroleum Division informed the ECC that SNGPL now estimates approximately Rs60 million will be required merely to conduct an operational health assessment of the idle machinery before any future use can be considered. The original project was estimated to cost Rs2.775 billion over a 15-year period. Of this amount, Rs943 million was allocated for plant installation, land acquisition, and civil works, while another Rs1.832 billion was earmarked for developing a gas distribution network capable of serving around 12,000 consumers in Chitral. Financial projections prepared at the time painted a challenging picture. SNGPL estimated an annual revenue shortfall of Rs419 million in the first year, increasing to approximately Rs815 million by the sixth year. In addition, the cost of producing synthetic natural gas through the LPG air-mix system was projected at nearly Rs25,000 per million British thermal units (mmBtu) during the initial year of operations. Despite these concerns, the Petroleum Division has now proposed a revised and more cost-effective plan. Officials told the ECC that by redesigning the project, optimising engineering specifications, and utilising existing company resources, the overall capital requirement could be reduced significantly to Rs1.779 billion. The revised proposal includes cutting civil construction costs and using surplus pipeline materials already available in SNGPL’s inventory. The company also believes operational expenses can be lowered by reducing unaccounted-for-gas (UFG) losses based on operational experience from similar facilities in Gilgit, while also improving fuel and power efficiency. Under the updated estimates, the annual revenue deficit could decline to Rs119 million in the first year, rising to Rs432 million by the sixth year. Likewise, the cost of producing synthetic natural gas could be brought down to around Rs7,229 per mmBtu, assuming an initial consumer base of approximately 2,000 households. To avoid further financial losses and make productive use of equipment already purchased, the Petroleum Division has recommended that one LPG air-mix plant be established in Chitral, subject to a technical health assessment of the stored equipment and approval from the original equipment vendor.

Federal Minister for Power Awais Leghari outlined Pakistan’s long-term strategy to transform its electricity sector, setting an ambitious target of raising the share of clean energy in the national power mix to 90 percent by 2035. The announcement came during the Solar, Storage and Flexibility 2026 Conference, where the minister also highlighted key policy hurdles, including restrictions under Pakistan’s International Monetary Fund (IMF) programme that are delaying the introduction of a market-based electricity pricing mechanism. Speaking at the conference on Tuesday, Leghari said the government was pursuing a major shift in energy policy by moving away from a traditional generation-focused model towards a system centred on grid flexibility, energy security, battery storage and domestic manufacturing. He said the new approach is designed to reduce Pakistan’s dependence on imported fuels, shield consumers from volatile global energy prices and maximise the benefits of the country’s rapidly expanding solar sector. The minister said Pakistan has witnessed remarkable growth in rooftop solar installations, with nearly 38 gigawatts of distributed solar capacity now installed through private consumer investment. He described the rapid adoption of rooftop solar as one of the country’s biggest energy success stories but cautioned that it has also created new challenges for the national power system. According to Leghari, Pakistan generates significant amounts of electricity from solar energy during daylight hours, yet the absence of sufficient battery storage infrastructure prevents that surplus electricity from being utilised during evening peak demand. He stressed that without modern storage systems, the country would continue to struggle with balancing electricity supply and demand despite having abundant renewable energy resources. Referring to disruptions in Re-gasified Liquefied Natural Gas (RLNG) supplies earlier this year, the minister said the episode exposed Pakistan’s continued dependence on imported fuels. He noted that the interruption in fuel supplies led to electricity shortages and load shedding even though ample solar power was available during the daytime, highlighting the urgent need for large-scale energy storage. “Battery storage is no longer an optional technology—it has become a strategic national asset that is essential for ensuring Pakistan’s energy sovereignty,” Leghari said. He noted that clean energy sources, including hydropower, nuclear, wind and solar, currently contribute approximately 55 percent of Pakistan’s total electricity generation. However, he warned that achieving the government’s renewable energy targets would require significant investment in battery storage systems, transmission infrastructure and power market reforms. The minister emphasised that expanding renewable generation alone would not be sufficient unless supported by a modern electricity network capable of storing and transmitting clean energy efficiently. To support the country’s long-term energy transition, Leghari announced a three-point strategy. The plan includes expanding battery energy storage systems across the national grid, encouraging local battery manufacturing and assembly to reduce reliance on imports while creating employment opportunities, and introducing regulatory reforms aimed at providing long-term certainty and confidence for domestic and foreign investors. During a question-and-answer session following his address, the minister also disclosed that Pakistan’s commitments under the IMF programme currently limit the government’s ability to introduce a fully flexible, market-based electricity tariff system. He explained that the government has been in discussions with the IMF for several months regarding the introduction of a time-of-use tariff, under which electricity prices would vary according to the actual cost of power generation at different hours of the day. Such a system, he said, would encourage consumers to shift electricity consumption to off-peak periods, reduce pressure on the national grid and help integrate renewable energy more efficiently.