The capital market opened the week on Monday in the red with mixed sentiments as investors navigated between optimism over improving economic indicators and concerns about potential policy measures.
The market saw significant selling pressure as concerns over potential gas price hikes weighed heavily on investor sentiment.
The Pakistan Stock Exchange’s benchmark KSE-100 Index closed at 116,255.12, marking a decline of 1,331.86 points, or -1.13%, from the previous session’s close of 117,586.98. The market reached an intraday high of 118,735.09, before reversing sharply to hit a low of 115,941.94.
Market pressures emerged following reports of a potential gas price hike. Ismail Iqbal Securities CEO Ahfaz Mustafa said: “The market is under pressure at midday due to the reports of gas price increase.”
“IMF has asked Pakistan to increase captive gas prices for industries which can potentially stress the balance sheets of all gas-related utilities and general industries,” he added.
The proposed levy on gas supply to industrial captive power plants is part of the IMF’s structural benchmarks under the $7 billion Extended Fund Facility. Compliance with these measures is critical for Pakistan to secure the next $1 billion tranche in March.
Pakistan is set to receive a $20 billion loan from the World Bank over the next decade under the Country Partnership Framework 2025-35, according to sources. This funding aims to enhance sustainable economic development across key sectors.
The loan programme, pending approval on January 14, aligns with the government’s National Economic Transformation Plan, which targets ambitious economic goals, including doubling GDP growth and halving poverty over five years.
