Pakistan stocks close weekend trading 1.8 percent down amid post-election uncertainty

Stock brokers monitor share prices displayed on a digital screen during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on February 12, 2024. (AFP/File)
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Updated 16 February 2024
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Pakistan stocks close weekend trading 1.8 percent down amid post-election uncertainty

  • The benchmark KSE100 index has lost 3,927 points since the unexpected outcome of the Feb. 8 national polls
  • Analysts say the uncertainty at the stock market will continue to prevail until the formation of the next government

KARACHI: Pakistan stock market closed the weekend trading on bearish note by shedding 1,147 points amid persistent lack of clarity on the formation of future government and dismal performance of country’s manufacturing sector, equity analysts said.

Three-time former prime minister Nawaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) party and former foreign minister Bilawal Bhutto-Zardari-led Pakistan People’s Party (PPP) have held two rounds of consultation, but have not been able to chalk out a clear plan for government formation.

Both parties set up coordination committees after the Feb. 8 election in which the PML-N emerged as the largest party in the National Assembly with 75 seats, while the PPP secured the second spot with 54 seats. Both are rivals of ex-PM Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party.

The key stock index, KSE100, dropped by 1,147 points or 1.8 percent to close at 59,872.96 on Friday, compared to the previous close of 61,020 points. The index has lost 3,927 points since the surprise outcome of the February 8 general elections.

Pakistani stock analysts said the uncertainty prevailing over the formation of the future government coupled with the dismal performance of manufacturing sector and gas price hike supported the bearish spell at the bourse.

“Stocks fell sharply amid dismal data related to negative LSM [large scale manufacturing] growth at minus 0.39 percent for July-December 2023 and lack of clarity over coalitions power sharing formula,” Ahsan Mehanti, CEO of Arif Habib Corporation, told Arab News. “The cabinet approval of increase in gas prices also played a catalyst role in the bearish close.”

Zafar Moti, CEO of Zafar Moti Securities, said the market was still fundamentally strong but the election outcome was the key bearish factor.

“There’s still nothing wrong with the stock market as it is giving best payouts, best dividends and best results,” he added.

Moti believes the bear would continue to sway the market until the next government was formed and a clear economic roadmap was shared by the new administration.

Pakistani financial experts said the continued protest by PTI and other parties after the elections was also creating negative environment at the bourse.

“The market is looking at the key players in the next government, trying to figure out what the new government would look like amid PTI protests,” Shahid Ali Habib, CEO of Arif Habib Securities, told Arab News.

“These are things that will create further political uncertainty,” he continued. “But once the formation of the government happens, it is expected that the market will rebound.”

Pakistan on Friday also released the trade numbers, indicating that the trade deficit had declined by 24 percent on an annual basis to $2 billion in January 2024.

During the first month of the year, exports stood at $2.8 billion, up 25 percent on an annual basis, but declining by negative one percent on month-on-month (MoM). The country’s imports in January stood at $4.8 billion that was down by 1 percent on an annual basis, according to the Pakistan Bureau of Statistics.

During the seven months of the current fiscal year (7MFY24), the trade deficit also decreased by 33 percent on an annual basis to $13.2 billion.


Pakistan eyes carbon market partnership with ADB to advance climate goals

Updated 6 sec ago
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Pakistan eyes carbon market partnership with ADB to advance climate goals

  • Carbon markets reduce emissions by letting countries buy and sell tradable ‘carbon credits’
  • Pakistan introduced its first carbon market policy last year to drive a low-carbon transition

ISLAMABAD: Pakistan’s Climate Change Minister Dr. Musadik Malik on Thursday met with a high-level Asian Development Bank (ADB) delegation to explore potential collaboration on carbon markets as part of the country’s evolving climate strategy, said in an official statement.

The visiting team was led by Toru Kubo, ADB’s Senior Director for Climate Change and Sustainable Development. The discussions focused on leveraging carbon markets to reduce greenhouse gas emissions and attract new streams of climate finance for sustainable development.

Carbon markets are trading systems that allow countries, companies or organizations to buy and sell carbon credits or permits representing the right to emit a specific amount of carbon dioxide. These markets create financial incentives for reducing emissions and investing in greener alternatives.

“Both sides agreed to formulate a comprehensive, mutually aligned climate change strategy, with a specific focus on carbon credit mobilization, climate innovation and outcomes-based project implementation,” the climate change ministry said in a statement.

The two sides also explored ways for Pakistan to strategically align its carbon finance agenda with the Sustainable Development Goals, aiming to turn climate action into a driver of economic growth, it added.

On the occasion, Malik assured the ADB of full support in the strategy formulation, emphasizing that it should remain “impact-driven, transparent and results-oriented.”

Kubo highlighted ADB’s support for developing member countries, including Pakistan, by enhancing their carbon finance capabilities through mobilizing investments in low-carbon technologies, enabling them to access and benefit from global carbon markets.

The ministry said the meeting showed that climate action is now seen as a way to boost the economy, not just an environmental measure, with more countries paying attention to carbon markets.

Pakistan unveiled the country’s first National Carbon Market Policy in November 2024, saying that the government wanted to attract investments in green initiatives and transition toward a low-carbon economy.

According to the Global Climate Risk Index, Pakistan is ranked as the fifth most vulnerable country to climate change.

In 2022, devastating floods claimed about 1,700 lives and affected more than 33 million people, causing economic losses exceeding $30 billion.

Although international donors pledged over $9 billion to support Pakistan’s flood recovery, officials report that only a small portion of the promised funds were received by the country.


Pakistan secures Hajj facilities upgrade through deal with Saudi Al-Rajhi company

Updated 59 min 36 sec ago
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Pakistan secures Hajj facilities upgrade through deal with Saudi Al-Rajhi company

  • Nearly 114,700 Pakistanis will perform Hajj, including 89,000 under the government scheme and 25,700 privately
  • Tents have been equipped with ACs, fans, partitioned sofa-beds, sliding doors and luggage racks for added comfort

ISLAMABAD: Pakistan has finalized arrangements for its Hajj pilgrims in coordination with Saudi Arabia’s Al-Rajhi company, upgrading tents and amenities at key pilgrimage sites under a new agreement aimed at improving services for those traveling under the Government Hajj Scheme, an official confirmed Thursday.

The deal with Al-Rajhi, a licensed Tawafa company responsible for assisting foreign pilgrims in Mina, Arafat and Muzdalifah, marks a significant step in elevating standards traditionally reserved for private tour groups.

The move comes as Pakistan seeks to improve the experience for nearly 89,000 pilgrims performing Hajj this year under the state-run scheme.

In total, 114,698 Pakistanis are expected to perform Hajj beginning June 4, including 25,698 under private operators. As of Thursday, 84,638 government-sponsored pilgrims had arrived in Saudi Arabia on 329 flights, while 17,959 private pilgrims had also reached the kingdom.

Pre-Hajj flight operations are scheduled to conclude on May 31.

“An agreement was signed with the Tawafa company Al-Rajhi for Mina, Arafat and Muzdalifah, and all arrangements and facilities at the sacred sites are being finalized for this year’s Hajj,” Muhammad Umer Butt, a spokesperson for the Ministry of Religious Affairs, told Arab News from Makkah over the phone.

Officials from Pakistani Hajj Mission brief Pakistan’s Religious Affairs Minister Sardar Yousaf about this year’s Hajj arrangement at the Pakistani camps in Mina, Saudi Arabia on May 29, 2025. (Handout/MORA)

He said pilgrims under the Government Hajj Scheme will now benefit from upgraded camp infrastructure.

“Air conditioners and extra fans have been added to the tents along with air coolers,” he informed, adding that modern sofa-cum-beds with partitions on both sides have been introduced to prevent the spread of infections caused by breathing or sweating.

Additional improvements include luggage racks, sliding doors in place of traditional tarpaulin sheets, gypsum board tent walls, artificial grass carpeting in corridors, protective sunshades, fans along walkways and designated shoe racks.

For the first time, Pakistani medical teams will be stationed at each camp to provide support in addition to Saudi medical services.

“A first aid team will be added to every camp, where doctors and medical staff will be available at all times,” Butt said.

He said Pakistan’s Hajj mission had also worked closely with Saudi authorities and the Maktab system to implement a transport strategy across the sacred sites, or Mashair, to ensure smooth movement of pilgrims.

“Saudi authorities have issued special instructions to protect pilgrims from the extreme weather conditions, and our mission ensures that these instructions are communicated clearly and understandably to all Pakistani pilgrims,” he added.

A dedicated complaint management cell has been set up to address pilgrims’ concerns in real time.

“A total of 2,241 complaints were received regarding lost luggage, out of which 2,209 were resolved with the luggage delivered to the concerned pilgrims,” Butt said.

“In Madinah, 636 bags were misplaced during handling, of which 630 were recovered and returned,” he continued.

He said that around two dozen pilgrims who had gone missing from their groups in Makkah and Madinah were also successfully located and reunited.

More than 39,000 Pakistani pilgrims completed their visit to Riyad al-Jannah — the sacred area in Masjid al-Nabawi believed to be a garden from Paradise — mostly using the official Nusuk app in Madinah.

For those unfamiliar with the digital system, special permits were arranged for 14,000 individuals.

Butt praised Saudi Arabia’s digital Hajj infrastructure and logistical planning, which he said had greatly eased the pilgrimage experience for visitors from around the world.


Pakistan projects 3-4% inflation next month ahead of June 10 budget

Updated 58 min 47 sec ago
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Pakistan projects 3-4% inflation next month ahead of June 10 budget

  • Monthly economic report says consumer price inflation is likely to ease by 1.5 percent to 2 percent year-on-year in May
  • It warns that inflationary pressures may resurface slightly in June due to seasonal trends and base effects

KARACHI: Pakistan expects inflation to pick up to between 3 percent and 4 percent in June, the Finance Ministry said in its monthly economic report released Thursday, as the country prepares to announce its federal budget for the fiscal year 2025-26 on June 10, a date that falls during the Eid Al-Adha holidays.

The ministry said consumer price inflation was projected to ease between 1.5 percent and 2 percent year-on-year in May, following months of steady decline driven by monetary tightening and a drop in food and energy prices.

However, it noted that inflationary pressures could resurface slightly next month due to seasonal factors and base effects.

“Improved weather conditions, better crop yields and a stable exchange rate have helped reduce inflation to a historical low,” the report said, adding that “inflation is projected to remain between 1.5-2.0 percent in May, with a possible rise to 3.0-4.0 percent by June 2025.”

The State Bank of Pakistan, in its half-yearly report last month, forecast average inflation for the fiscal year ending June 2025 to remain within 5.5 percent to 7.5 percent, reflecting easing cost pressures across key commodities.

Finance Adviser Khurram Schehzad on Thursday confirmed the official timeline for the country’s fiscal announcements in a social media post aimed at dispelling speculation about possible delays due to the Eid Al-Adha holidays.

“The dates are firm,” he said on platform X. “As communicated earlier, the upcoming Federal Budget FY26 is on schedule to be announced on June 10, 2025. Similarly, the upcoming Pakistan Economic Survey FY25 is scheduled to be announced on June 9, 2025.”

Pakistan’s macroeconomic outlook has improved in recent months, supported by a stronger current account balance, improved remittances and falling inflation.

However, authorities remain cautious as they seek to build on recent economic stabilization, steer the country toward gradual growth and reaffirm their commitment to ongoing economic reforms.

With input from Reuters


Pakistan invites Japan to join mineral sector drive through joint ventures, value addition

Updated 29 May 2025
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Pakistan invites Japan to join mineral sector drive through joint ventures, value addition

  • Commerce minister Jam Kamal says Japan can help build sustainable supply chains for critical minerals
  • He says Islamabad sees Japan not only as a partner but as a catalyst for transforming Pakistan’s economy

ISLAMABAD: Pakistan has invited Japan to invest in its minerals sector through joint ventures focused on exploration, processing and value addition, with commerce minister, Jam Kamal, holding high-level meetings in Tokyo this week, the government said in a statement on Thursday.

The outreach is part of Pakistan’s broader push to attract foreign investment and strengthen its struggling economy. Islamabad has prioritized mining and minerals as a key sector for economic diversification, and is seeking Japanese collaboration to unlock its untapped resource potential while aligning with Tokyo’s industrial needs.

“Our mineral sector remains largely underexplored,” Kamal said during meetings with officials from the Japan International Cooperation Agency (JICA), the Japan External Trade Organization (JETRO) and the Japan–Pakistan Business Cooperation Committee (JPBCC).

“We are offering Japanese partners the opportunity to participate in high-value ventures that can help build sustainable supply chains for critical minerals,” he added.

The minister highlighted reserves of rare earth elements like copper, gold and other industrial minerals, positioning Pakistan as a strategic destination for resource-based cooperation.

He emphasized Pakistan’s openness to technology transfer, public-private partnerships and long-term frameworks that support mutual gains.

In his conversation with JICA’s Senior Vice President HARA Shohei, Kamal underlined the importance of aligning future development cooperation with Pakistan’s industrial modernization and export-oriented growth.

He acknowledged Japan’s long-standing contribution of over $11 billion in areas such as energy, transport and vocational training, and called for expanded technical assistance in mineral logistics, industrial clusters and green technologies.

Meeting JETRO President Susumu Kataoka and Executive Vice President Kazuya Nakajo, the minister urged greater Japanese investment in Pakistan’s Special Economic Zones and export-oriented sectors.

He called on JETRO to promote Pakistan’s mineral sector to Japanese industry through seminars, business-to-business (B2B) outreach, and participation in trade exhibitions.

At a luncheon hosted by JPBCC, Kamal encouraged deeper B2B ties and sought active Japanese input for the upcoming Pakistan-Japan Business Dialogue.

“Our doors are open,” he said. “We see Japan not only as a partner but as a catalyst for transforming Pakistan’s economic base. With your advanced technology and our resource potential, we can build future-proof industries together.”

Pakistan has in recent years stepped up its diplomatic engagement with key economic partners to promote sectors such as information technology, light engineering and mineral development.

The Tokyo visit marks a fresh attempt to align its resource-led ambitions with Japan’s technological strengths and global supply chain priorities.


Pakistan PM arrives in Tajikistan on final leg of five-day regional diplomacy tour

Updated 29 May 2025
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Pakistan PM arrives in Tajikistan on final leg of five-day regional diplomacy tour

  • The tour earlier took him to Türkiye, Iran and Azerbaijan after a military confrontation with India
  • In Tajikistan, Sharif will attend a glacier conference, present Pakistan’s stance on climate change

ISLAMABAD: Prime Minister Shehbaz Sharif arrived in Tajikistan’s capital Dushanbe on Thursday, the final stop in a five-day regional diplomacy tour that earlier took him to Türkiye, Iran and Azerbaijan, following a recent military confrontation with archrival India.

The tour has seen Sharif engage with regional allies to reaffirm diplomatic ties and economic cooperation, while also garnering support in the wake of heightened tensions with India.

Sharif was received at the Dushanbe airport by Tajik Prime Minister Qohir Rasulzoda.

“Prime Minister Muhammad Shehbaz Sharif has arrived in Dushanbe, the capital of Tajikistan, on a two-day visit,” his office said in a statement.

“During the visit, he will hold a bilateral meeting with Tajik President Emomali Rahmon to discuss cooperation in various sectors and thank the Tajik leader for his strong support during the recent India-Pakistan tensions,” it continued.

Earlier in the day, Sharif concluded his visit to Azerbaijan, where he announced that the Azeri leadership had reaffirmed plans to invest $2 billion in Pakistan and deepen collaboration in commerce, defense, education and health.

On Wednesday, Sharif attended a trilateral summit in the Lachin district with Azerbaijan’s President Ilham Aliyev and Turkish President Recep Tayyip Erdoğan. The three leaders pledged to expand cooperation and turn their longstanding fraternal ties into a strategic partnership for regional prosperity.

During his previous stops, Sharif also met Iranian President Masoud Pezeshkian and Supreme Leader Ayatollah Ali Khamenei in Tehran to discuss trade, energy and regional connectivity. In Türkiye, from where he kicked off his regional tour, the Pakistani prime minister held talks with Erdoğan on defense, infrastructure and intelligence cooperation.

Pakistan has long sought to strengthen ties with landlocked Central Asian nations by offering them access to its Arabian Sea ports, part of its broader push for regional connectivity and economic integration.

The Prime Minister’s Office said in its statement Sharif will also participate in a high-level international conference on glacier preservation in Tajikistan, where he is expected to brief participants on the impact of climate change on Pakistan and reaffirm the country’s commitment to environmental protection.