The equity market maintained its upward momentum on Tuesday, driven by investor confidence in the cement sector and positive developments on circular debt reforms.
The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) surged to an intraday high of 143,059.81, rising by 1,228.7 points or 0.86%.
It also recorded a low of 142,235.71, up 183.07 points or 0.13%.
“Investors are upbeat ahead of better-than-expected earnings from cement companies,” noted Topline Securities CEO Mohammad Sohail.
Independent investment and economic analyst AAH Soomro added: “The bullish trend continues amid expectations of improved performance in the Exploration & Production (EnP) sector due to easing liquidity.
Meanwhile, the cement sector is buoyed by strong sales growth, and abundant liquidity is actively flowing into stocks.”
Meanwhile, the government reported a reduction in power sector circular debt by Rs780 billion, bringing the total down to Rs1.614 trillion.
The Power Division attributed the decline to lower line losses, improved bill recovery, and cost savings from renegotiated IPP contracts.
However, some industrialists cautioned that the relief may be temporary, as the government continues to raise bank loans to clear arrears.
Oil and Gas Development Company Ltd (OGDCL) confirmed receiving a Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL), part of a broader Rs132.7 billion settlement involving term finance certificates issued in 2013.
The total interest to be paid in monthly instalments stands at Rs92 billion, with the balance now reduced to Rs84.3 billion.
On the fiscal side, fresh data released by the Ministry of Finance shows Pakistan’s consolidated budget deficit for FY25 stood at Rs6.17 trillion, or 5.4% of GDP — an improvement from the previous year’s 6.8%.
Total revenues increased 36% year-on-year to Rs17.997 trillion, while total expenditure rose 18% to Rs24.166 trillion.
The primary surplus improved significantly to Rs2.719 trillion, or 2.4% of GDP, compared to Rs953 billion (0.9% of GDP) in FY24.
Tax revenues rose 26% to Rs12.723 trillion in FY25, while non-tax revenues surged 66% to Rs5.275 trillion.
Development expenditure also jumped 43% year-on-year to Rs2.966 trillion.
On Monday, the KSE-100 surged by 1,017.66 points, or 0.72%, to 142,052.65 points from 141,034.99 points recorded in the last session.
The highest index of the day remained at 142,323.34 points, while the lowest level was recorded at 141,440.48 points.
