PSX commences the new fiscal year with vigour, reaching unprecedented records.
The Pakistan Stock Exchange (PSX) commenced the fiscal year 2025-26 with an optimistic trend as investors reacted positively to China’s rollover of a $3.4 billion commercial loan and the government’s initiatives to lower electricity prices.
On Tuesday, during intraday trading, the KSE-100 benchmark increased by 2,508.26 points, reaching an all-time high of 128,135.57 points, reflecting a positive change of 2 percent.
On the previous day, the 100-Index concluded the fiscal year 2024-25 with an upward trend, increasing by 1,248.25 points, a positive change of 1.00 percent, to finish at 125,627.31 points.
A total of 124,379.07 shares were exchanged today, in contrast to 773,409,701 shares on the prior trading day, while the share price was Rs 35.238 billion compared to Rs 37.567 billion on the last trading day.
A total of 481 companies traded shares in the stock market, with 297 experiencing gains, 152 incurring losses, and the share prices of 32 companies remaining stable.
China extends $3.4 billion in commercial loans to Pakistan.
China has extended $3.4 billion in loans to Islamabad, which, along with other recent commercial and multilateral financing, will elevate Pakistan’s foreign exchange reserves to $14 billion, according to a finance ministry source on Sunday.
Beijing extended $2.1 billion, previously held in Pakistan’s central bank reserves for three years, and refinanced an additional $1.3 billion commercial loan that Islamabad repaid two months prior, according to the source.
Additionally, $1 billion has been acquired from Middle Eastern commercial banks and $500 million from multilateral financing, he stated.
“This aligns our reserves with the IMF target,” he stated.
The loans, particularly those from China, are essential for bolstering Pakistan’s insufficient foreign reserves, which the IMF mandates to exceed $14 billion by the conclusion of the current fiscal year on June 30.
The government intends to reduce electricity prices across the country by Rs1.15 per unit.
Beginning July 1, the federal government intends to lower electricity prices across the country and has officially submitted a petition to the National Electric Power Regulatory Authority (Nepra) requesting a reduction of Rs1.15 per unit in power tariffs.
This reduction will be applicable to all consumer categories, excluding lifeline domestic users, who are already benefiting from substantial subsidies. The government has advised against any modifications to tariffs for the initial two tiers of lifeline consumers.
Nepra has arranged a public hearing on July 1 to finalise the procedure prior to officially announcing and executing the revised rates.
The petition states that lifeline consumers utilising up to 50 units monthly will maintain a rate of Rs3.95 per unit, whereas those consuming between 50 and 100 units will continue to incur a charge of Rs7.74 per unit.
A uniform reduction of Rs1.15 per unit is proposed for FY2025-26 for all other consumers, including domestic (non-lifeline), commercial, industrial, agricultural, and bulk users. The relief percentage will fluctuate between 3% and 10%, contingent upon prevailing rates.
