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Pakistan stocks hit all-time high on 9-year low deficit, macro stability hopes

Pakistan stocks hit all-time high on 9-year low deficit, macro stability hopes
A stockbroker walks past share prices on a financial market board during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on April 9, 2025. (AFP/File)
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Pakistan stocks hit all-time high on 9-year low deficit, macro stability hopes

Pakistan stocks hit all-time high on 9-year low deficit, macro stability hopes
  • The market recorded an overall trading volume of 548 million shares, with a turnover of Rs37 billion
  • Investor confidence fueled by local, foreign inflows and gains across many sectors, research firm says

ISLAMABAD: The Pakistan Stock Exchange (PSX) soared to another all-time high as it surpassed the 143,000-point mark on Tuesday, with analysts linking the bullish trend to the country’s 9-year low fiscal deficit and optimism about macroeconomic stability.

The benchmark KSE-100 index jumped 984.52 points, or 0.69 percent, to close at 143,037.16 points, compared to the previous day's close of 142,052.64 points.

The development came as Pakistan recorded a 5.38 percent deficit — its lowest in nine years — in fiscal year 2024-25 that ended in June, beating the government and the International Monetary Fund (IMF) estimates.

The major contributors to the rally were Fauji Fertilizer Company (FFC), United Bank Limited (UBL), MCB Bank Limited (MCB), Hub Power Company (HUBC), and Engro Fertilizers Limited (EFERT), collectively adding 679 points.

"Sentiment further strengthened as Pakistan reported a 9-year low fiscal deficit of 5.38 percent in FY25, with 36 percent YoY (year-on-year) revenue growth outpacing an 18 percent rise in expenditures," the Karachi-based Topline Securities firm said in its market review.

"Investor confidence was fueled by local and foreign inflows and gains across many sectors of the market," it said. "The market’s upward trajectory reflects optimism over fiscal discipline, macroeconomic stability and a stronger earnings outlook, setting the stage for sustained momentum in the sessions ahead."

Overall, the PSX recorded a trading volume of 548 million shares, with a turnover of Rs37 billion.

Ahsan Mehanti, the CEO of Arif Habib Commodities, attributed the rally to the government's fiscal policies.

"Government approval to resume subsidies for fully funded remittances scheme to ensure rupee stability, surging global equities, speculations over government resolve to end power sector circular debt crisis played a catalyst role in the bullish close," he told Arab News.

The development comes amid a broader macroeconomic turnaround for Pakistan, which is currently in its first year of a $7 billion IMF loan program approved in September 2024 to stabilize the economy, increase revenues and curb inflation after a prolonged balance of payments crisis.

According to Topline Securities, non-tax revenues have surged 66% year-on-year, led by a robust dividend of Rs2.62 trillion from the central bank, the State Bank of Pakistan, up from Rs0.97 trillion in FY24. Meanwhile, tax revenues grew 26%, driven primarily by gains in collections by the Federal Board of Revenue (FBR).

“In the last 5 years, FBR revenues (including Petroleum Development Levy) have increased 3.02x from Rs4.3 trillion in FY20 to Rs12.9 trillion in FY25,” the report noted, adding that over the same period, GDP rose from Rs41 trillion to Rs114.6 trillion.

The FBR’s tax-to-GDP ratio rose to 11.3% in FY25, a seven-year high compared to 9.7% last year.

“This is higher than the average of 9.9% recorded between FY20 to FY24,” the brokerage said, noting that higher Petroleum Development Levy collections may have substituted for sales tax to avoid revenue-sharing obligations with provinces.

Pakistan also recorded a primary surplus of 2.4% of GDP in FY25 – the highest in more than two decades – as revenue growth outpaced expenditures. This exceeded both the government's revised projection of 2.2% and the IMF’s forecast of 2.1%.

“Higher primary surplus is achieved as revenue growth surpassed the expenditures growth,” Topline Securities said.

Interest expenses as a percentage of FBR taxes declined to 76% in FY25 from 88% in FY24, reflecting better debt management.

“The improvement in debt servicing is on the back of controlled growth — 9% in interest expenses — due to lower interest rates,” the report said.

Development spending also rose, with the Public Sector Development Program (PSDP) reaching 2.6% of GDP, its highest in five years, though still well below the 5% peak recorded in FY2017.

Looking ahead, Topline Securities said, it expected the government to continue on a path of fiscal consolidation.

“Pakistan is expected to post [a] third consecutive year of primary surplus in FY26 after two decades,” it said. “While overall fiscal deficit is expected to clock in at 4.0–4.1% of GDP in FY26, [the] lowest in two decades.”

The improved fiscal performance is likely to strengthen Islamabad’s case in ongoing negotiations with the IMF and other international creditors as it seeks long-term debt sustainability and economic recovery.


Pakistan watchdog disqualifies National Assembly opposition leader, other Imran Khan aides after riot convictions

Pakistan watchdog disqualifies National Assembly opposition leader, other Imran Khan aides after riot convictions
Updated 8 sec ago

Pakistan watchdog disqualifies National Assembly opposition leader, other Imran Khan aides after riot convictions

Pakistan watchdog disqualifies National Assembly opposition leader, other Imran Khan aides after riot convictions
  • Anti-terrorism court convicted Omar Ayub, Shibli Faraz, others on July 31 over involvement in violent protests in May 2023
  • Disqualification comes as Khan’s party is holding protests to secure his release from prison, demand audit of 2024 elections

ISLAMABAD: Pakistan’s election commission on Tuesday disqualified the leader of the opposition in the National Assembly, Omar Ayub Khan, and eight other lawmakers from former prime minister Imran Khan’s party, days after an anti-terrorism court convicted them for involvement in violent protests last year.

The decision comes amid fresh demonstrations by Khan’s Pakistan Tehreek-e-Insaf (PTI) party to mark the second anniversary of his imprisonment and to demand an audit of February 2024 general elections.

The lawmakers were convicted on July 31 by an anti-terrorism court in Faisalabad for their alleged roles in riots that broke out in May 2023 following Khan’s brief arrest on corruption charges. The protests saw hundreds of PTI supporters storm government and military installations in scenes that triggered a wide-reaching state crackdown and mass arrests.

In a notification issued Tuesday, the Election Commission of Pakistan (ECP) said the lawmakers were disqualified under Article 63(1)(h) of the Constitution, which bars any individual from holding office if convicted of an offense involving “moral turpitude” and sentenced to at least two years in prison.

“In pursuance of orders dated 31.07.2025 passed by the Anti-Terrorism Court Faisalabad... Senator Shibli Faraz, Omar Ayub, MNA from NA-18 Haripur, Rai Haider Ali, MNA from NA-96 Faisalabad-II, Sahibzada Hamid Raza, MNA from NA-104 Faisalabad-X, Rai Hassan Nawaz Khan, MNA from NA-143 Sahiwal-III, Zartaj Gul, MNA from NA-185 DG Khan-II, Muhammad Ansar Iqbal, MPA from PP-73 Sargodha-III, Junaid Afzal, MPA from PP-98 Faisalabad-I, and Rai Muhammad Murtaza Iqbal, MPA from PP-203 Sahiwal-VI are hereby disqualified,” the ECP said.

“Consequently, their seats have become vacant.”

Last week, an anti-terror court in Faisalabad sentenced PTI leaders, including Omar Ayub Khan, Shibli Faraz, Hamid Raza, and Zartaj Gul Wazir, to 10 years imprisonment for their involvement in the May 9 riots.

Information Minister Attaullah Tarar had welcomed the court’s ruling, accusing PTI supporters of setting fire to government buildings, damaging military property and injuring law enforcement personnel during the May 9, 2023 unrest.

“This is a story of sacrifice to save the world from terrorism,” he said after the ruling.

“Pakistan is a wall between terrorists and the world... if this wall becomes weak, the fire will not stop at our borders.”

Khan’s party denies encouraging violence and has rejected the terrorism charges against its members. Khan says he was in jail when the protests took place and did not direct the violence.

The latest disqualifications come as the PTI is holding protests to call for Khan’s release and push for an enquiry of the February 8 general elections, which the party alleges were rigged. Pakistan’s election authorities deny the allegations.

Khan’s candidates, contesting as independents due to a ban on PTI’s electoral symbol, emerged as the largest bloc in the February vote. However, rival parties later joined hands to form a coalition under Prime Minister Shehbaz Sharif, who denies any wrongdoing or electoral manipulation.

Ahead of Tuesday’s demonstrations, local administrations in Rawalpindi, Islamabad, Lahore and other cities imposed bans on public gatherings and dozens of PTI workers were reportedly detained overnight.


US tip leads to arrest of Pakistani NGO chief in child smuggling case

US tip leads to arrest of Pakistani NGO chief in child smuggling case
Updated 2 min 33 sec ago

US tip leads to arrest of Pakistani NGO chief in child smuggling case

US tip leads to arrest of Pakistani NGO chief in child smuggling case
  • Experts blame legal loopholes, weak enforcement for Pakistan’s failure to curb child smuggling
  • Last year, FIA arrested Sarim Burney over alleged illegal adoptions after US raised complaint

KARACHI: Pakistani authorities have arrested the head of a Karachi-based non-governmental organization on charges of child smuggling and illegal overseas adoptions after a tip-off from the US Consulate, prompting rights activists to say the case exposed flaws in the country’s child protection and law enforcement systems.

Dr. Mubina Cassum Agboatwala, chairperson of Health-Oriented Preventive Education (HOPE), was taken into custody on Monday by the Federal Investigation Agency (FIA) after a court dismissed her pre-arrest bail application.

The FIA’s Anti-Human Trafficking Circle (AHTC) in Karachi registered a case against Agboatwala in July 2025 after receiving a complaint from the US Consulate in September 2023. The consulate had alerted authorities that HOPE had facilitated illegal adoptions of minors, mostly to families in the United States.

“While Pakistan has taken legislative steps with the Prevention of Trafficking in Persons Act, 2018, and the Prevention of Smuggling of Migrants Act, 2018, the persistence of child trafficking reveals critical gaps in implementation and protection systems,” Pirbhu Satyani, a Sindh member of the National Commission on the Rights of the Child, told Arab News.

According to the First Information Report (FIR) lodged by the police, HOPE, registered as an NGO in 1997, was never authorized to operate as an orphanage or to arrange adoptions.

The report alleges the NGO routinely handed over “abandoned” children to foreign families the day after they were found, without informing police or social welfare officials. In many cases, adoptions were approved via court orders containing suspiciously identical narratives.

The FIR names 23 children, including two reportedly adopted by Agboatwala herself, and stated the organization failed to present evidence proving the children were genuinely abandoned. It accuses HOPE of being engaged in “the illegal business of trafficking of minors for their monetary benefits.”

“Children and families, particularly in rural and impoverished areas, are often unaware of their rights or unable to recognize trafficking,” Satyani said, adding that Pakistan lacked a centralized, child-specific database to track cases from rescue to rehabilitation.

He also noted the scarcity of trauma-informed shelters and reintegration programs for rescued children.

Legal expert Barrister Ali Tahir pointed to a systemic failure of enforcement despite an abundance of laws.

“Pakistan is an over-legislated country where some of the best and most modern laws have been made, but the implementation is almost non-existent,” he said. “The root cause of this is insufficient training and lack of capacity in our enforcement agencies.”

The HOPE case is not the first of its kind. In June last year, the FIA arrested Sarim Burney, head of the Sarim Burney Welfare Trust, on similar charges of smuggling a newborn to the US. In another case, a woman named Kiran Sohail was arrested for allegedly smuggling a child to Mozambique.

Child rights activist Kashif Mirza said that while Pakistan has built a robust legal framework, enforcement remains a persistent challenge.

“Although these laws exist, there are still obstacles in effectively addressing human trafficking in Pakistan, such as difficulties with enforcement, identifying victims and bringing perpetrators to justice,” he said.

He noted that Pakistan is currently ranked Tier 2 in the US State Department’s 2024 Trafficking in Persons Report, indicating that while efforts are underway, the country does not yet fully meet minimum standards for eliminating the problem.

“This means the country does not fully meet the minimum standards for eliminating trafficking but is making significant efforts to do so,” he said, adding the United Nations Office on Drugs and Crime’s Global Report on Trafficking in Persons 2024 also emphasized the need for better implementation and faster justice.

“With the growing number of children identified as victims of trafficking, it is essential for national authorities to ensure that child protection mechanisms, including care facilities, are informed and prepared to identify and refer cases of child exploitation, while paying special attention to the vulnerabilities that children face regarding trafficking,” Mirza added.


Pakistanis hold anti-India rallies to mark 6th anniversary of revocation of Kashmir’s special status

Pakistanis hold anti-India rallies to mark 6th anniversary of revocation of Kashmir’s special status
Updated 21 min 28 sec ago

Pakistanis hold anti-India rallies to mark 6th anniversary of revocation of Kashmir’s special status

Pakistanis hold anti-India rallies to mark 6th anniversary of revocation of Kashmir’s special status
  • Protesters denounce 2019 revocation of Kashmir’s special status, demand restoration of statehood for Himalayan region
  • In Srinagar, supporters of India’s opposition Congress party also rallied to demand restoring statehood of the disputed region

MUZAFFARABAD: Chanting anti-India slogans, hundreds of people rallied on Tuesday in Azad Kashmir to mark the sixth anniversary of India’s revocation of the disputed region’s semi-autonomous status.

The rallies in the part of the disputed Kashmir region governed by Pakistan came nearly three months after Pakistan and India exchanged military strikes over a mass shooting in the Indian-controlled part of Kashmir, which New Delhi blamed on Islamabad, a charge Pakistan denied. The confrontation raised fears of a potential nuclear conflict before global powers defused the crisis.

The protesters denounced the August 5, 2019, revocation of Kashmir’s special status by Indian Prime Minister Narendra Modi and demanded the restoration of statehood for the Himalayan region, which has been split between India and Pakistan and claimed by both in its entirety.

The region has sparked two wars between the nuclear-armed neighbors since 1947, when the nations gained independence from Britain.

The main protest Tuesday in Muzaffarabad, the capital of Pakistan-administered Kashmir, which is called Azad Kashmir, drew hundreds of members of civil society and political parties.

Mazhar Saeed Shah, a leader of the All Parties Hurriyat Conference — an alliance of pro-freedom Kashmiri political and religious groups — at the rally urged the international community to help ensure Kashmiris are granted the right to self-determination, as called for in UN resolutions decades ago.

Similar anti-India demonstrations were held in Islamabad, where Deputy Prime Minister Ishaq Dar reaffirmed Pakistan’s moral and diplomatic support for Kashmiris seeking what he called “freedom from India’s illegal occupation.”

Meanwhile in Srinagar in Indian-administered Kashmir, supporters of India’s opposition Congress party rallied to demand that the government restore the statehood of the disputed region.


Opposition party stages rallies in Pakistan’s northwest to demand ex-PM Khan’s release

Opposition party stages rallies in Pakistan’s northwest to demand ex-PM Khan’s release
Updated 27 min 57 sec ago

Opposition party stages rallies in Pakistan’s northwest to demand ex-PM Khan’s release

Opposition party stages rallies in Pakistan’s northwest to demand ex-PM Khan’s release
  • Supporters mobilize in multiple districts of PTI-ruled KP province as party marks two years since ex-PM’s arrest
  • Government imposes Section 144 to prevent large gatherings in Islamabad, dozens of party supporters arrested

PESHAWAR: Supporters of the Pakistan Tehreek-e-Insaf (PTI) party held coordinated rallies across Khyber Pakhtunkhwa province on Tuesday to demand the release of jailed ex-premier Imran Khan but were unable to convene in the capital and other key regions due to arrests of supporters and restrictions on public gatherings. 

The rallies mark the second anniversary of Khan’s arrest and come amid a 90-day “do or die” protest campaign the party launched in mid-July. The PTI leadership has pledged peaceful but sustained mobilization against what it calls politically motivated cases against Khan and other party leaders.

Ahead of Tuesday’s rallies, at least 120 PTI supporters and leaders were arrested in raids overnight, security officials confirmed to Reuters. Most of the detentions, made on Monday night and early on Tuesday, were in the eastern city of Lahore where the PTI had vowed its biggest demonstration, as well as protests elsewhere.

At least 200 activists had been arrested from Lahore, said party spokesperson Zulfikar Bukhari, adding that the protest would go ahead.

Khyber Pakhtunkhwa, a province the PTI has ruled since 2018, saw widespread mobilization on Tuesday despite a ban on public gatherings under Section 144 imposed in the federal capital and other regions. The main rally in the provincial capital, Peshawar, was led by KP Chief Minister Ali Amin Gandapur, while district-level convoys converged at interchanges and city centers across the province.

“This protest is being held to raise a voice against the illegal arrest of Pakistan Tehreek-e-Insaf chairman and former prime minister Imran Khan and to demand his immediate release,” said a statement by the PTI’s chapter in North Waziristan, a main district in Khyber Pakhtunkhwa.

“Imran Khan is the hope and voice of the people of Pakistan and is being targeted for political revenge,” party speakers said at a rally in North Waziristan’s main town of Miranshah, adding that “all false and baseless cases must be immediately dismissed.”

Rallies were reported in Swabi, Charsadda, Mardan, Nowshera, Mohmand, Battagram, Abbottabad, Upper Chitral, Shangla, Upper Dir, Mansehra and Kurram, among other areas.

“The Freedom Movement rally will also be held in other districts, with a large number of workers participating,” PTI Khyber Pakhtunkhwa social media head Ikram Khattana said in a statement shared with media.

“The rally departing from Swabi, Charsadda and Mardan will conclude at Ambar Interchange, Swabi … The rally departing from Chakdara Toll Plaza at 4pm will be led by MPAs Junaid Akbar and Fazal Hakim,” Khattana added.

In Upper Chitral, a major rally was led by Deputy Speaker of the KP Assembly Surayya Bibi and PTI District President Shehzada Sikandarul Mulk. Party representatives said cabinet members, tehsil chairpersons, women’s wing leaders and VC chairmen participated as the caravan moved toward Charon Bridge.

In district Kurram, PTI described the rally as “historic,” and said it was held in defiance of “difficult conditions” for political activism in the area.

“The people of Kurram have proven that they stand with Imran Khan,” the party’s district unit said.

The protests follow a national call to action by PTI, which announced in July it would stage “do or die” demonstrations every week for 90 days to demand Khan’s release.

The party’s leadership claims he is facing over 170 cases, including charges of corruption, sedition and terrorism, which they allege are part of a military-backed crackdown to keep him out of politics. The government and army deny the charges of political persecution.

The PTI ruled Pakistan from 2018 until 2022, when Khan was ousted in a parliamentary no-confidence vote. He was arrested in May 2023 and again in August 2023, and is currently imprisoned at Adiala Jail in Rawalpindi, where he is serving sentences in multiple cases. He has also been disqualified from holding public office by Pakistan’s election commission.

Security was tight in the capital and in parts of Punjab on Monday and Tuesday, with the government imposing Section 144 to prevent large gatherings. In Rawalpindi and Islamabad, authorities preemptively detained dozens of PTI activists, according to local media reports. However, there were no major reports of violence from Khyber Pakhtunkhwa, where the PTI remains in government.

Khan’s party had always created “chaos,” Uzma Bukhari, a spokesperson of the provincial government, told a press conference on Monday.

“No political party can be barred from politics in Pakistan, but a terrorist organization disguised as a political party is not allowed to disrupt Pakistan’s peace.”


Pakistan’s Gwadar port, Chinese company ink agreement for industrial, commercial agreements

Pakistan’s Gwadar port, Chinese company ink agreement for industrial, commercial agreements
Updated 05 August 2025

Pakistan’s Gwadar port, Chinese company ink agreement for industrial, commercial agreements

Pakistan’s Gwadar port, Chinese company ink agreement for industrial, commercial agreements
  • China’s Xinning Enterprise, Gwadar Port Authority ink agreement to launch new industrial projects, optimize existing facilities
  • Through Gwadar port, Pakistan has been attempting to capitalize on its geostrategic location to boost transit trade, foreign investment

KARACHI: Chinese company Xinning Enterprise and the Gwadar Port Authority (GPA) have signed an agreement to stimulate industrial and commercial investments at the port and its free zone, Pakistan’s maritime affairs ministry said on Tuesday. 

Gwadar city is situated along the Arabian Sea and lies at the heart of the China-Pakistan Economic Corridor (CPEC), under which Beijing has funneled tens of billions of dollars into massive transport, energy and infrastructure projects in Pakistan. 

Pakistani officials have said Gwadar’s geostrategic position as the shortest trade route to the Gulf and Central Asia highlights its port’s potential to become a regional transshipment hub. 

“China’s Xinning Enterprise has signed a Letter of Intent (LoI) with Gwadar Port Authority (GPA) to stimulate major industrial and commercial investments at Gwadar Port and its Free Zone, underscoring Gwadar’s growing role as a key regional hub for trade and economic activity,” the statement said. 

The statement said these ventures include developing Gwadar port as a regional transshipment center, launching new industrial projects, optimizing existing facilities within the Gwadar Free Zone and relocating industries.

Pakistan’s Maritime Affairs Minister lauded the partnership as a “significant milestone” in strengthening Gwadar’s strategic importance.

“He highlighted Xinning Enterprise’s potential to boost the port’s throughput, attract foreign investment, and contribute to the broader economic development of the region,” the statement said. 

Chaudhry reaffirmed the government’s commitment to transforming Gwadar into a global maritime gateway and industrial powerhouse, the ministry added. He stressed that collaborations with reputable international enterprises will accelerate Pakistan’s maritime and economic ambitions.

As cash-strapped Pakistan recovers from a macroeconomic crisis with the help of a $7 billion International Monetary Fund deal, Islamabad has been looking to capitalize on its geostrategic location to boost transit trade and foreign investment for a sustainable economic recovery.

Prime Minister Shehbaz Sharif’s government has eyed increased trade and investment deals with regional allies such as the Gulf countries and Central Asian Republics since Pakistan came close to defaulting on its debt in 2023.