A surge of institutional buying and sector-specific optimism propelled the equity market to fresh highs on Wednesday, with the benchmark index breaching the 144,000 mark amid renewed investor confidence in oil, remittances, and fiscal liquidity.
“There’s been a flurry of good news and the index has broken out from technical resistance of 140. This has induced a fresh wave of buying especially in the oil sector (due to payments to OGDC),” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index rose to an intraday high of 144,285.74 points, gaining 1,248.58 points, or 0.87%, while touching a low of 143,409.59, up 372.43 points, or 0.26%, from the previous close of 143,037.16.
Out of the Rs58 billion in outstanding claims for incentivising remittance inflows under the Telegraphic Transfer Charges Incentives Scheme (TTCIS), the government has approved Rs30 billion.
The TTCIS, initiated in 1985, provides a zero-cost send model for eligible remittance transactions. The reimbursement backlog, caused by a surge in home remittances exceeding allocated funds, will now be cleared in phases through technical supplementary grants.
Separately, the government plans to borrow Rs6.175 trillion from commercial banks via Treasury bills and Pakistan Investment Bonds (PIBs) between August and October, according to the auction calendar issued by the State Bank of Pakistan (SBP). This includes Rs3.675 trillion in T-bills of varying maturities and Rs2.5 trillion in fixed and floating-rate PIBs.
The strategy, designed to pre-fund budgetary needs ahead of potential monetary easing, aligns with IMF commitments to avoid central bank borrowing. The SBP held its benchmark interest rate at 11% last week, citing renewed inflation concerns. Since June 2024, the policy rate has been reduced by 1,100 basis points from a high of 22%.
Meanwhile, Oil and Gas Development Company Ltd (OGDCL) confirmed it received the first Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL) as part of a long-delayed Rs132.7 billion circular debt settlement. The repayment stems from term finance certificates (TFCs) issued in 2013, with interest payments scheduled through mid-2026.
OGDCL had previously recognised the interest income over the TFCs’ lifecycle, with a carrying value of Rs170 billion as of March 2024. The firm had booked a Rs23 billion loss due to discounted payment valuation, of which Rs10.6 billion had been reversed by March 2025.
On Tuesday, the Pakistan Stock Exchange (PSX)’s benchmark KSE-100 index closed the trading session at 143,037.16. The index remained positive throughout the day, reaching an intraday high of 143,281.35 (+1,228.7) and a low of 142,235.71 (+183.07) points.
