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Pakistan stock market sheds over 2,000 points amid stalled Afghan talks, economic uncertainty

Pakistan stock market sheds over 2,000 points amid stalled Afghan talks, economic uncertainty
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi, Pakistan July 3, 2023. (Reuters/File)
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Updated 7 min 54 sec ago

Pakistan stock market sheds over 2,000 points amid stalled Afghan talks, economic uncertainty

Pakistan stock market sheds over 2,000 points amid stalled Afghan talks, economic uncertainty
  • The KSE-100 index fell 2,062 points, or 1.27 percent, to close at 160,101.02 points
  • HUBC, MEBL, HBL, OGDC and UBL dragged the benchmark index down by 585 points
Updated 7 min 54 sec ago
Hasaan Ali Khan

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Tuesday dropped more than 2,000 points, with analysts attributing the decline to a lack of progress in the Istanbul talks with Afghanistan and economic uncertainty.

The benchmark KSE-100 index fell 2,062.79 points, or 1.27 percent, to close at 160,101.02 points, compared to the previous day's close of 162,163.8 points.

The development came as talks between Pakistan and Afghanistan entered their fourth day in Istanbul with no breakthrough as Islamabad made a "last-ditch effort" to persuade Kabul to act against militants.

A possible collapse of talks has raised fears about economic uncertainty in the country, which has been navigating a long path to recovery under a $7 billion International Monetary Fund (IMF) program.

"Stocks slump amid security unrest on unresolved Pak-Afghan border tensions and State Bank of Pakistan (SBP) status quo in policy rates," Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.

"Economic uncertainty amid falling exports, rising inflation played a catalyst role in selling activity in the futures rollover at PSX."

The Monetary Policy Committee of Pakistan's central bank on Monday decided to keep the policy rate unchanged at 11 percent at a time when SBP is juggling modest economic growth, external‐sector vulnerabilities and inflation risks.

Meanwhile, the Karachi-based Topline Securities market research firm projected Pakistan’s headline inflation, measured by the Consumer Price Index (CPI), to rise 5.25–5.75 percent year-on-year in October.

In its daily market review, Topline Securities said the index witnessed a tug of war between bullish and bearish investors.

"The mixed performance was largely attributed to the ongoing futures rollover week and a spate of corporate earnings announcements, which kept investors cautious and triggered profit-taking across key sectors," it added.

"Losses were mainly driven by Hub Power Company (HUBC), Meezan Bank Limited (MEBL), Habib Bank Limited (HBL), Oil and Gas Development Company (OGDC), and United Bank Limited (UBL), collectively shaving off 585 points from the index," the market research firm continued.

"On the flip side, Lucky Cement Limited (LUCK), Pakistan Services Limited (PSEL), Service Industries Limited (SRVI), Bank AL Habib Limited (BAHL), and TRG Pakistan Limited (TRG) provided some support, contributing a combined 171 points to the benchmark."

Topline said 1,014 million shares were traded, with overall turnover reaching Rs36.7 billion. K-Electric (KEL) led the volume charts with 94.5 million shares changing hands.

Topics: Pakistan Stock Exchange

Survey shows foreign investors’ confidence in Pakistan rising as 73 percent recommend future FDI

Survey shows foreign investors’ confidence in Pakistan rising as 73 percent recommend future FDI
Updated 5 min 19 sec ago

Survey shows foreign investors’ confidence in Pakistan rising as 73 percent recommend future FDI

Survey shows foreign investors’ confidence in Pakistan rising as 73 percent recommend future FDI
  • Survey flags high business costs, complex taxes and slow contract enforcement as key investor concerns
  • OICCI says investors see IT, renewables, agriculture, pharma and export manufacturing as top FDI sectors
Updated 5 min 19 sec ago
Ismail Dilawar

KARACHI: Nearly three-fourths of leading foreign investors in Pakistan view the country as a viable destination for future investment, a new survey showed on Tuesday, marking a cautious uptick in sentiment amid improved macroeconomic stability and a stronger currency.

The findings, published in the Overseas Investors Chamber of Commerce and Industry’s Perception and Investment Survey 2025, come as Islamabad seeks to rebuild investor confidence through the Special Investment Facilitation Council (SIFC), a hybrid civil-military body formed in 2023 to streamline decision-making, attract foreign investment and coordinate economic policy across federal and provincial levels.

The OICCI represents over 200 multinational firms. Its survey showed 73 percent of its members recommend Pakistan for foreign direct investment (FDI), up from 61 percent in 2023. The chamber attributed the shift to stabilizing inflation, which fell from 37 percent over two years ago to 4 percent in July 2025, a relatively stable rupee and improved credit ratings.

“The notable upward shift in investor sentiment demonstrates that economic stability and policy coordination are beginning to deliver results,” said OICCI President Yousaf Hussain.

“Initiatives like the SIFC have provided a structured mechanism for investment facilitation and inter-governmental alignment,” he added. “Going forward, deeper private-sector inclusion and continued reforms in taxation and regulatory efficiency will be key to sustaining this momentum.”

The survey found that foreign investors’ perception of business risk had shifted from high to medium, though many of them cited structural bottlenecks, including weak federal-provincial coordination, delayed tax refunds, high energy costs and lengthy commercial dispute resolution, as key constraints.

According to OICCI, 96 percent of members reported higher energy costs, 95 percent faced increased wage expenses and 91 percent cited rising raw material costs. Over half said commercial disputes take more than five years to resolve.

The chamber noted that Pakistan’s ability to sustain investor confidence will depend on consistent reforms and policy continuity.

It also urged the government to strengthen Pakistan’s global image, with 82 percent of respondents saying negative international coverage continued to affect investment decisions.

Foreign investors identified IT and digital services, renewable energy, agriculture, pharmaceuticals, and export-oriented manufacturing as the most promising sectors for future FDI.

“While investor confidence has improved, the survey also highlights critical areas needing immediate attention, particularly high business costs, complex taxation, and delays in contract enforcement,” OICCI CEO and Secretary General M. Abdul Aleem said.

Founded in 1860, the OICCI is Pakistan’s oldest business chamber and one of South Asia’s leading forums for multinational investors.

Topics: Direct foreign investment Pakistan economy

Cloud data firm Veeam to buy Pakistani-origin entrepreneur’s Securiti AI for $1.73 billion

Cloud data firm Veeam to buy Pakistani-origin entrepreneur’s Securiti AI for $1.73 billion
Updated 28 min 31 sec ago
Reuters

Cloud data firm Veeam to buy Pakistani-origin entrepreneur’s Securiti AI for $1.73 billion

Cloud data firm Veeam to buy Pakistani-origin entrepreneur’s Securiti AI for $1.73 billion
  • Deal will merge Securiti AI’s Data Command Center with Veeam’s recovery platform
  • Securiti AI CEO Rehan Jalil will be president of security and AI after the deal closes
Updated 28 min 31 sec ago
Reuters

Veeam Software has agreed to buy data privacy management software maker Securiti AI for about $1.73 billion, in a bid to tap customers seeking to safeguard and manage cloud data used in artificial intelligence applications.

The deal would integrate Securiti AI’s Data Command Center product, used to unify and secure data scattered across multiple cloud services, with Veeam’s backup and recovery software, the companies said last week.

Veeam aims to better compete with rivals such as Rubrik (RBRK.N), opens new tab and Commvault Systems (CVLT.O), opens new tab with the acquisition, as cybersecurity incidents surge.

Securiti AI Chief Executive Rehan Jalil will join Veeam as president of security and AI after the transaction closes, which is expected in the fourth quarter, the companies said.

Morgan Stanley advised Securiti AI on the transaction and JPMorgan provided financing to Veeam.

The companies said Veeam will continue to offer the San Jose, California-based Securiti AI’s Data Command Center product and plans to announce integrated capabilities soon.

In December last year, US private equity firm Insight Partners, which is the largest shareholder in Veeam, said it sold a $2 billion stake in the company in a secondary sale valuing the firm at $15 billion.

Veeam was acquired by Insight Partners for about $5 billion in 2020.

Veeam’s software helps customers quickly recover their data after cybersecurity incidents including ransomware attacks as well as accidental data loss.

Its core product supports immutable backups to prevent ransomware from modifying or deleting data, ensuring that clean copies remain available for recovery even if hackers encrypt files.

Topics: Pakistani entrepreneur Pakistan IT industry

Pakistan inflation to clock in at over 5% in Oct led by higher food prices — report

Pakistan inflation to clock in at over 5% in Oct led by higher food prices — report
Updated 28 October 2025

Pakistan inflation to clock in at over 5% in Oct led by higher food prices — report

Pakistan inflation to clock in at over 5% in Oct led by higher food prices — report
  • Key contributors to the food inflation are tomatoes (+27 percent), fresh vegetables (+25 percent), and onions (+10 percent)
  • A shift in global commodity prices remains a major variable that can alter inflation trajectory, it says
Updated 28 October 2025
Arab News Pakistan

ISLAMABAD: Pakistan’s headline inflation, measured by the Consumer Price Index (CPI), is expected to reach 5.25–5.75% in October year on year, a market research firm said on Tuesday.

This is in comparison with 5.61% inflation in Sept. 2025 and 7.17% in Oct. 2024, according to Karachi-based Topline Securities. On a month-on-month basis, inflation for Oct. 2025 is projected at +1.1 percent.

“Food segment is expected to show increase of 1.21% MoM,” the brokerage and research firm said on Tuesday. “The resurgence in food inflation is primarily on the back of supply side effect on food products due to floods and closure of Afghan Border in the country.”

The frontier was closed after days of cross-border strikes and skirmishes between the two countries, which began on Oct. 11, over a surge in militancy in Pakistan’s western regions that border Afghanistan.

Key contributors to food inflation are tomatoes (+27 percent), fresh vegetables (+25 percent), and onions (+10 percent), though fresh fruit and chicken are down 10% and 25 percent, respectively, according to the report.

The transport segment is expected to rise by 1.12% MoM, mainly due to a 2.1% rise in motor fuels, with petrol rising 1.7% and high-speed diesel (HSD) rising 2.5 percent.

In Pakistan, inflation has fallen sharply from a record 37.97% in May 2023, when global commodity shocks, energy price hikes and currency depreciation sent prices soaring.

By late 2024 and early 2025, headline inflation had fallen into single digits on monthly measures, aided by tight monetary policy, base effects and external stabilization efforts.

“With inflation expectations of 5.25-5.75% for Oct. 2025, real rates will surge to 525-575bps, higher than Pakistan’s historic average of 200-300bps,” the report read.

“A significant shift in global commodity prices remains a major variable that could alter the inflation trajectory moving forward.”

Topics: Pakistan economy inflation in Pakistan

Pakistan, agree to launch Economic Cooperation Framework to boost trade, investment ties

Pakistan, agree to launch Economic Cooperation Framework to boost trade, investment ties
Updated 28 October 2025

Pakistan, agree to launch Economic Cooperation Framework to boost trade, investment ties

Pakistan, agree to launch Economic Cooperation Framework to boost trade, investment ties
  • Framework aims to boost cooperation in energy, mining, IT, tourism and food security sectors
  • Development follows PM Shehbaz Sharif’s meeting with Crown Prince Mohammed bin Salman
Updated 28 October 2025
Waseem Abbasi

ISLAMABAD: Pakistan and agreed to launch an Economic Cooperation Framework to strengthen trade and investment ties, according to an official statement released in Islamabad on Tuesday, as both sides move to expand their decades-old partnership following the signing of a defense pact last month.

The development comes a day after Prime Minister Shehbaz Sharif met Saudi Crown Prince Mohammed bin Salman on the sidelines of the Future Investment Initiative summit in Riyadh.

Last month, the two countries signed a security agreement pledging that aggression against one would be treated as an attack on both. The move was widely viewed as formalizing longstanding military cooperation into a binding commitment aimed at bolstering joint deterrence.

“Prince Mohammed bin Salman ... and Shehbaz Sharif, Prime Minister of the Islamic Republic of Pakistan, agreed during their meeting held in Riyadh on Monday to launch an Economic Cooperation Framework between the Kingdom of and the Islamic Republic of Pakistan,” the Pakistani prime minister’s Office said in an official statement.

“This framework is based on the two countries’ shared economic interests and reaffirms their mutual desire to strengthen trade and investment relations to serve their common interests,” it added.

According to the statement, several strategic and high-impact projects will be discussed under the framework across economic, trade, investment, and development fields, adding both sides will focus on priority sectors including energy, industry, mining, information technology, tourism, agriculture and food security.

The two countries are also studying joint projects, including two new memorandums of understanding on electricity interconnection and energy cooperation.

The framework, Islamabad said, reflects the two nations’ shared vision to build a sustainable partnership across key economic and investment sectors.

The leaders also expressed hope that the next meeting of the Saudi-Pakistan Supreme Coordination Council, the highest forum for giving strategic direction to bilateral relations, would be convened soon to advance the agenda.

Pakistan and have long enjoyed close ties but have sought to broaden cooperation in recent years.

Last year, the two countries signed 34 memorandums of understanding worth $2.8 billion across multiple sectors.

The two nations share longstanding ties rooted in faith, mutual respect and strategic cooperation, with Riyadh remaining a key political and economic partner of Islamabad.

The Kingdom also hosts more than 2.5 million Pakistani expatriates, the largest source of remittances for Pakistan’s $407 billion economy.

Topics: Pakistan ties Pakistan trade

Pakistan’s growth forecast at 3 percent as World Bank calls for reforms, flood recovery measures

Pakistan’s growth forecast at 3 percent as World Bank calls for reforms, flood recovery measures
Updated 28 October 2025

Pakistan’s growth forecast at 3 percent as World Bank calls for reforms, flood recovery measures

Pakistan’s growth forecast at 3 percent as World Bank calls for reforms, flood recovery measures
  • World Bank says recent floods have imposed significant human costs and economic losses, dampening growth prospects
  • The bank calls for a broader tax base, enhanced privatization efforts and export diversification for inclusive and resilient growth
Updated 28 October 2025
Arab News Pakistan

ISLAMABAD: Pakistan’s economy is expected to grow by 3 percent in the current fiscal year, as recent floods weigh on agriculture and overall recovery, the World Bank said on Tuesday, urging the government to sustain economic reforms to ensure stability and inclusive growth.

In its “Pakistan Development Update: Staying the Course for Growth and Jobs,” the Washington-based lender said growth prospects remain subdued despite a rebound in industry and services, with ongoing fiscal tightening and monetary discipline helping anchor inflation and maintain current account and primary fiscal surpluses.

It noted the current economic outlook has been primarily been tempered by recent floods, which have resulted in significant impact on people and damage to urban areas and agricultural land.

“Pakistan’s recent floods have imposed significant human costs and economic losses, dampening growth prospects and adding pressure on macroeconomic stability,” said Bolormaa Amgaabazar, the World Bank’s Country Director for Pakistan. “Staying the course on reforms and accelerating job creation is critical to maintaining growth along with strengthening social safety nets and infrastructure that protects the most vulnerable.”

The report projected real GDP growth to stay at 3 percent in FY26 before edging up to 3.4 percent in FY27, supported by continued macroeconomic stability and structural reforms.

“Sustaining progress will require a balanced mix of revenue and expenditure measures to manage flood impacts while maintaining progress toward fiscal consolidation,” said Mukhtar Ul Hasan, the report’s lead author.

The World Bank urged Pakistan to broaden its tax base, strengthen revenue administration and reduce the state’s footprint through privatization of state-owned enterprises, while prioritizing climate-resilient infrastructure to mitigate disaster risks.

The report also highlighted that Pakistan’s export share had fallen from 16 percent of GDP in the 1990s to around 10 percent in 2024, leaving the economy heavily dependent on debt and remittance-driven consumption.

It called for deeper trade agreements, stronger trade finance and logistics and expanded digital and energy infrastructure to support export-led growth.

“The government has placed export growth at the center of its development agenda,” said co-author Anna Twum.

“However, tariff reforms alone will not suffice and must be complemented by broader measures to expand access to export markets.”

Pakistan has been a World Bank member since 1950, receiving over $48.3 billion in assistance to date.

The current World Bank portfolio comprises 54 projects worth $15.7 billion, while the International Finance Corporation (IFC), the bank’s private sector arm, has invested about $13 billion across renewable energy, infrastructure and financial inclusion.

Topics: Pakistan GDP growth GDP forecast World Bank

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