The Pakistan Stock Exchange (PSX) started the new fiscal year 2025-26 with bullish trend as investors welcomed China’s rollover of $3.4 billion commercial loan and government’s efforts to reduce electricity prices.
During intraday trading on Tuesday, the KSE-100 bench mark gained 2,508.26 points to hit all-time high of 128,135.57 points, a positive change of 2 percent.
A day earlier, the 100-Index wrapped up the outgoing fiscal year 2024-25 with bullish trend as it gained 1,248.25, a positive change of 1.00 percent, to close at 125,627.31 points.
A total of 124,379.07 shares were traded during the day as compared to 773,409,701 shares the previous trading day, whereas the price of shares stood at Rs 35.238 billion against Rs 37.567 billion on the last trading day.
As many as 481 companies transacted their shares in the stock market, 297 of them recorded gains and 152 sustained losses, whereas the share price of 32 companies remained unchanged.
Prime Minister Muhammad Shehbaz Sharif has extended his gratitude to the business community and investors who are fully supporting the government in the country’s development and prosperity as the Pakistan Stock Exchange’s 100 index reached historic high on the first day of the new fiscal year.
In a statement issued here, the prime minister expressed his satisfaction on the rising trend in the Stock Exchange, adding, “The new fiscal year has begun with good news and a significant development in the economic field, which is very propitious.”
The Stock Market 100 Index, he said reaching its highest level was a manifestation of the fact that the confidence of the business community and investors in the country’s economy and government policies was strengthening and stabilizing with each passing day.
Prime Minister Shehbaz added that the country’s economy showed consistent, gradual recovery due to the government’s promising economic policies in the last fiscal year.
“The new fiscal year will prove to be a milestone in the journey towards improving the country’s economy. The government is making efforts to promote the best business environment and provide more facilities to investors. I pay tribute to the government’s economic team for this success,” the prime minister said
China has rolled over $3.4 billion in loans to Islamabad, which together with other recent commercial and multilateral lending will boost Pakistan’s foreign exchange reserves to $14 billion, a finance ministry source said on Sunday.
Beijing rolled over $2.1 billion, which has been in Pakistan’s central bank’s reserves for the last three years, and refinanced another $1.3 billion commercial loan, which Islamabad had paid back two months ago, the source said.
Another $1 billion from Middle Eastern commercial banks and $500 million from multilateral financing have also been received, he said.
“This brings our reserves in line with the IMF target,” he said.
The loans, especially the Chinese ones, are critical to shoring up Pakistan’s low foreign reserves, which the IMF required to be over $14 billion at the end of the current fiscal year on June 30.
Starting July 1, the federal government plans to reduce electricity prices nationwide and has formally submitted a petition to the National Electric Power Regulatory Authority (Nepra), seeking a Rs1.15 per unit cut in power tariffs.
This reduction will apply to all consumer categories except for lifeline domestic users, who are already receiving significant subsidies. The government has recommended no changes to tariffs for the first two slabs of lifeline consumers.
Nepra has scheduled a public hearing on July 1 to finalise the process before officially notifying and implementing the revised rates.
According to the petition, lifeline consumers using up to 50 units per month will continue to pay Rs3.95 per unit, while those using 50 to 100 units will still be charged Rs7.74 per unit.
For all other consumers, including domestic (non-lifeline), commercial, industrial, agricultural, and bulk users, a flat reduction of Rs1.15 per unit is proposed for FY2025-26. The percentage of relief will vary, ranging from 3% to 10%, depending on current rates.