Pakistan stock market hits record high on ADB funding boost, insurance sector buying

Stock brokers monitor share prices on a digital screen during a trading session at the Pakistan Stock Exchange (PSX) as index plummeted amid a global market crash, in Karachi on April 7, 2025. (AFP/File)
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Updated 03 June 2025
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Pakistan stock market hits record high on ADB funding boost, insurance sector buying

  • The benchmark KSE-100 index gained 1,573.07 points, or 1.32 percent, during Tuesday’s trading
  • Anticipated relief for oil refineries, real estate and agri sectors played catalyst role, analysts say

ISLAMABAD: The Pakistan Stock Exchange (PSX) surged to an all-time high of more than 120,000 points on Tuesday, with analysts attributing the rally to the Asian Development Bank’s (ADB) financing package for Pakistan and strong buying by insurance companies in banking, fertilizer and power sectors.

The benchmark KSE-100 index closed at an unprecedented high of 120,450.87 points, marking a gain of 1,573.07 points, or 1.32 percent, from the previous day’s close of 118,877.80.

The development follows the ADB’s approval of an $800 million package to help Pakistan enhance fiscal reforms and economic stability, alongside the government’s approval of over Rs800 billion for public sector development projects in the upcoming budget.

“Stocks closed all time high led by scrips across the board after ADB approval of $800 million financing package,” Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News.

“Government set FY26 growth target at 4.2percent and government approval for Rs880 billion PSDP in the federal budget FY26 announcements next week.”

Mehanti said the anticipated budgetary relief for oil refineries, real estate and agriculture sectors, along with gains in rupee’s value, played a catalytic role in the bullish close at the PSX.

Raza Jafri, head of Intermarket Securities, said this was the first time the KSE-100 Index has ever closed above the 120,000-point mark.

“Strong buying by insurance companies in sectors such as banks, fertilizers and power led the market higher,” he said.

The budget for fiscal year 2025–26 is expected to be presented in Pakistan’s lower house of parliament on June 10, following the Eid Al-Adha holidays.

Pakistan’s annual inflation rate rose to 3.5 percent in May, though the country’s macroeconomic outlook has improved in recent months, supported by a stronger current account balance, increased remittances and declining inflation.

Authorities remain cautious as they aim to build on recent economic stabilization, guide the country toward gradual growth, and reaffirm their commitment to ongoing economic reforms.


Punjab, Beijing review protection of Chinese nationals in eastern Pakistan

Updated 4 sec ago
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Punjab, Beijing review protection of Chinese nationals in eastern Pakistan

  • Chinese nationals have increasingly come under attack in Pakistan, mostly by separatist militants, in recent months
  • Frustrated by the attacks, Beijing has been pushing Islamabad to bolster security for Chinese nationals

ISLAMABAD: Dr. Ahmad Javed Qazi, the home secretary of Pakistan’s Punjab, met Chinese Consul General Zhao Shiren on Wednesday to discuss security arrangements for Chinese nationals in the eastern province, the home department said in a statement.

The move follows Pakistani Prime Minister Shehbaz Sharif’s announcement last week to enhance security measures for Chinese nationals across Pakistan, aiming to boost bilateral engagement under the second phase of the China-Pakistan Economic Corridor (CPEC).

Beijing has been frustrated by a string of attacks on Chinese nationals in Pakistan since last year. These attacks have mostly been carried out by separatist Baloch militant groups, who accuse Pakistan and China of depriving locals in Balochistan of a share in the province’s mineral resources. Beijing has invested in the province with a key port and has mining interests there as well. Both Islamabad and Pakistan deny the allegations.

“The meeting focused on the law and order situation in Punjab and the security arrangements for Chinese nationals,” the provincial home department said in a statement issued after the Shiren-Qazi meeting.

One of the attacks included a bombing at the Karachi airport last October that killed two Chinese engineers returning to work at a power plant. Beijing has called on Islamabad to bolster security for its nationals in Pakistan in recent months.

Qazi assured Shiren that ensuring the safety of Chinese tourists and officials working on CPEC projects was a top priority, the home department said.

“We are committed to the security and facilitation of all Chinese nationals residing in Punjab,” he added. “The capacity of the Special Protection Unit is being enhanced to further strengthen security for Chinese citizens.”

Pakistan announced forming the special police unit last year to protect foreigners, particularly Chinese nationals, living in the country amid increasing attacks on Chinese citizens.

Qazi highlighted that foolproof security arrangements were in place across all industrial zones across the province. He said the federal government’s guidelines regarding the movement of Chinese nationals should be followed strictly.

“Our offices are always open to Chinese citizens and government representatives,” Qazi said.

Beijing has been pressing Pakistan in recent months to allow Chinese security personnel to protect the thousands of its citizens working there amid frustration over the attacks.

Thousands of Chinese officials live and work in Pakistan, where Beijing has invested in the multi-billion-dollar CPEC project. The CPEC is a network of roads, railways, and energy projects designed to link China’s Xinjiang province with Pakistan’s Gwadar port on the Arabian Sea.


Pakistan warns of fresh monsoon spell from Aug. 5 as rain death toll surges to 288

Updated 36 min 33 sec ago
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Pakistan warns of fresh monsoon spell from Aug. 5 as rain death toll surges to 288

  • Met department warns of flash floods in Dir, Swat, Shangla, Mansehra, Azad Kashmir and Galliyat regions
  • PMD warns river flows are likely to increase up to medium level due to upcoming monsoon rains in country

ISLAMABAD: Pakistan’s Meteorological Department (PMD) warned on Wednesday that a fresh monsoon spell from August 5 onwards is likely to trigger heavy rains and flash floods in several parts of the country, as the death toll from rain-related incidents since June 26 surged to 288.

Torrential rains have continued to wreak havoc across Pakistan since late June, killing 288 people in total as per data shared by the National Disaster Management Authority (NDMA). The rains have killed 136 children in total and injured 691 people.

The Met Department also warned of flash floods in the northern regions’ local streams. These areas include Dir, Swat, Shangla, Mansehra, Kohistan, Abbottabad, Kohat, Karak, Hangu, Tank, Dera Ghazi Khan, Murree, Galliyat and Azad Kashmir.

“A fresh monsoon activity with isolated heavy falls is expected to start from Aug 5,” the PMD said in its daily weather report.

It warned that river flows are likely to increase up to the medium level under the influence of the upcoming monsoon spell.

Authorities in Punjab issued a flood alert on Wednesday, warning of rising water levels in the Chenab, Jhelum and Sutlej rivers, with possible urban flooding in Rawalpindi, Gujranwala and Lahore over the next 48 hours.

The provincial disaster management authority (PDMA) urged residents in low-lying or riverbank settlements to follow precautionary guidelines and cooperate with local officials during evacuations.

Pakistan, which ranks among the world’s most climate-vulnerable nations, has witnessed increasingly erratic weather events in recent years.

In May, at least 32 people were killed in severe storms, while a third of the country was submerged by devastating floods in 2022 that killed more than 1,700 people, affected over 30 million and caused an estimated $35 billion in damages.

Prime Minister Shehbaz Sharif has repeatedly directed authorities to intensify rescue operations in flood-affected areas of the country.


Pakistan central bank surprises by holding key rate steady at 11%

Updated 52 min 4 sec ago
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Pakistan central bank surprises by holding key rate steady at 11%

  • Decision comes as IMF slashes growth forecast to 3.6% for FY26, well below Pakistan’s target
  • The government says the economy has stabilized, but analysts warn growth remains fragile

KARACHI: Pakistan’s central bank left its key interest rate unchanged at 11% on Wednesday, saying the inflation outlook had worsened a little due to energy price fluctuations, surprising analysts who had expected another cut.

In a Reuters poll this week, all 15 analysts said they expected the SBP to ease, with nine forecasting a 50-basis-points cut, four predicting a deeper 100-basis-points reduction and two projecting a smaller 25-basis-points cut.

The decision came as Pakistan pushes reforms under a $7 billion IMF program and a contractionary budget to curb deficits.

In its Economic Outlook Update on Tuesday, the IMF cut its growth forecast for the fiscal year ending June 2026 to 3.6%, well below the government’s 4.2% target.

“The Monetary Policy Committee (MPC) ... noted that the inflation outlook has somewhat worsened in the wake of higher than anticipated adjustment in energy prices, especially gas tariffs,” the State Bank of Pakistan (SBP) said in a statement.

The panel also noted that the trade deficit was expected to widen further in the fiscal year ending June 2026 amid a pickup in economic activity and a slowdown in global trade.

“Given this macroeconomic outlook and the emerging risks, the MPC considered today’s decision as necessary to ensure price stability,” it said.

The SBP had held rates in June after a 100-basis-points cut in May that resumed easing following a March pause. Since June 2024, it has lowered its policy rate by 1,100 basis points from a record 22% as price pressures receded.

Headline inflation slowed to 3.2 % in June and is projected at 3.5%–4.5% in July, within the SBP’s 5.5%–7.5% target range for the fiscal year ending June 2026.

The government says the economy has stabilized, but analysts warn growth remains fragile and global commodity price swings could still add pressure on prices and external balances.


Pakistan, US navy ships hold joint drills in North Indian Ocean

Updated 30 July 2025
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Pakistan, US navy ships hold joint drills in North Indian Ocean

  • PNS Shamsheer and USS Fitzgerald conduct exercises to boost interoperability, maritime coordination
  • Drills follow Pakistan-India military standoff in May that raised regional security and maritime tensions

ISLAMABAD: Pakistan Navy Ship (PNS) Shamsheer and United States Ship (USS) Fitzgerald conducted an exercise in the North Indian Ocean to enhance interoperability and strengthen maritime cooperation, the Pakistan Navy said on Wednesday.

The exercise follows a military stand-off between Pakistan and India in May, which also made the naval forces of the two countries adopt a hostile posture, though it did not lead to any exchange of fire at sea.

Pakistan and the US navies have a long history of joint maritime cooperation through drills, bilateral training missions and multinational operations like AMAN and CTF-150.

These engagements have focused on maritime security and coordinated responses to regional threats, reflecting a strategic partnership in maintaining stability in the Arabian Sea.

“PNS Shamsheer and USS Fitzgerald conducted a passage exercise in the North Indian Ocean, underscoring the maritime cooperation between the two navies,” the Pakistan Navy said in a post on X. 

“The exercise featured a series of professional naval engagements aimed at enhancing interoperability,” it added. “These interactions reaffirm the shared commitment of both navies to maritime security and regional stability.”

The PNS Shamsheer is a guided-missile frigate commissioned by the navy in December 2009.

It was built in China and has a strong track record in maritime security, participating in regional patrols, anti-piracy operations multinational exercises and bilateral drills.

The USS Fitzgerald is a guided-missile destroyer commissioned in October 1995 under the US Seventh Fleet.

The navy drill between Pakistan and the US comes at a time when the two countries are also in the process of rejuvenating their political and economic relationship.

The exercise is part of Pakistan’s broader strategy to strengthen naval partnerships and reinforce its presence in the region amid ongoing strategic rivalries.


UN credibility at stake over Palestine, Kashmir, says Pakistan speaker, as he backs multilateralism

Updated 30 July 2025
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UN credibility at stake over Palestine, Kashmir, says Pakistan speaker, as he backs multilateralism

  • Ayaz Sadiq was speaking at the 6th World Conference of Speakers of Parliament in Geneva
  • He warned the UN risked the fate of the League of Nations if multilateralism was undermined

ISLAMABAD: Pakistan’s National Assembly Speaker (NA) Sardar Ayaz Sadiq has warned that the credibility of the United Nations system is under threat, according to an official statement on Wednesday, as he called for a return to multilateralism to address long-standing conflicts in places like Palestine and Kashmir.

Speaking at the 6th World Conference of Speakers of Parliament in Geneva, Sadiq said the international system was being undermined by populism, unilateralism and the politicization of humanitarian principles.

He stressed the need for diplomacy and institutional reform to restore global trust in the system.

“The world has witnessed enough bloodshed,” Sadiq told parliamentary leaders from around the globe. “It is time for new thinking, time to embrace pluralism, time to respect diversity and time for a new beginning.”

Citing the UN Security Council’s failure to resolve protracted disputes around the world, he said peaceful conflict resolution must now be treated not only as a legal obligation, but a strategic imperative.

Coercion and unilateral action, he added, cannot deliver sustainable peace.

Sadiq evoked Geneva’s historic role as the heart of diplomacy, recalling that the city had been the birthplace and graveyard of the League of Nations.

He maintained today’s multilateral institutions risk a similar fate if they continue to be undermined by narrow nationalism and hegemonic politics.

The NA speaker praised the unanimous adoption of UN Security Council Resolution 2788, led by Pakistan during its recent presidency, which calls for strengthening global mechanisms for peaceful dispute settlement through mediation, arbitration, judicial action and diplomatic engagement.

Turning to the global economy, he said over 100 developing countries are facing debt distress or liquidity crises, highlighting what he described as systemic shortcomings in the international financial and trade architecture.

Sadiq called for urgent reforms to build a fairer, development-oriented global financial system that supports the Global South, enhances economic resilience and reduces inequality.

He also reiterated Pakistan’s longstanding call to reform and democratize the UN Security Council, making it more representative, accountable and transparent.

Only such reform, he added, can help restore trust in multilateralism and enable the global system to meet the challenges of the 21st century.