Economy: MPC likely to cut policy rate by 50bps - By Alpha - Akseer Research

May 2 2025


Alpha Capital


  • We anticipate the State Bank of Pakistan (SBP) to reduce the policy rate by 50bps in the upcoming MPC meeting on May 5th, 2025. The revised policy rate would settle at 11.5%. Our expectation is primarily driven by favorable economic factors, namely i) an improvement in external account, ii) a decline in headline inflation, and iii) falling global commodity prices. The geopolitical situation still remains fluid, with rising tensions on the eastern border alongside US-China trade war. These factors may influence the SBP to take a cautious stance and defer the rate cut until more clarity emerges.
  • The headline inflation is expected to settle within the SBP’s 5–7% medium-term target range in the next 12 months. A combination of falling imported inflation amid trade war and declining local food prices, backed by improved supply conditions, has dimmed the inflation outlook. Core inflation (NFNE) is also expected to taper off after being sticky at 9% since Dec-24, reinforcing our stance of a 50bps cut in the upcoming MPC meeting.
  • Pakistan’s current account posted an impressive surplus of USD 1.2bn in Mar-25, taking the cumulative 9MFY25 surplus to USD 1.9bn. The improvement was mainly backed by all-time high remittances, which surged to USD 4.1bn in Mar25, extending a sturdy support for the external account.

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Market Wrap: Highlights of the day - By JS Research

May 23 2025


JS Global Capital


  • Dull activity was observed on the last trading day of the week at the PSX, as investors adopted a cautious stance and preferred to stay on the sidelines ahead of the Federal Budget. The benchmark KSE-100 index fluctuated between an intraday high of 119,542 points (+389) and a low of 118,665 points (−487), before closing with a marginal loss of 50 points at 119,102. Trading volumes remained thin throughout the day, with major participation seen in sideboard stocks. Going forward, we expect the market to continue consolidating; hence, investors are advised to wait for dips before taking fresh positions.
Image Pakistan (IMAGE): Corporate Briefing Key Takeaways - By Topline Research

May 23 2025


Topline Securities


  • Topline Securities hosted a Corporate Briefing Session (CBS) for Image Pakistan (IMAGE) today, where senior management discussed the recent financial performance and future outlook of the company.
  • Rs193mn capex was incurred in 9MFY25, and management expects an additional Rs250mn for multi-head embroidery machinery and Rs150mn for store expansions over the next 9 months of CY25.
  • IMAGE currently has 14 outlets, with 4 more in progress (3 new and 1 expansion), bringing the total to 17 physical stores alongside a strong global online presence. Upcoming locations include the expanded Zamzama flagship, Bukhari Commercial in Karachi, F-6 MarkazIslamabad, and Giga Mall Rawalpindi.
Image Pakistan Limited (IMAGE): 3QFY25 Corporate Briefing Takeaways - By Taurus Research

May 23 2025


Taurus Securities


  • IMAGE is a premium fashion retailer specializing in Schiffli embroidery and digital lawn. It operates 14 stores across Pakistan and a growing online platform serving both local and international markets. With subsidiaries in the UK and USA, IMAGE targets the affordable luxury segment, blending traditional craftsmanship with modern design for its customers.
  • In 3QFY25, IMAGE reported sales of PKR 1,205 million, relatively unchanged from 3QFY24 sales of PKR 1,204 million. Gross profit margin slightly improved to 45% in 3QFY25 compared to 42% in the same period last year (SPLY). However, net profit after tax (PAT) decreased by 12% to PKR 209Mn in 3QFY25 from PKR 238Mn in the SPLY due to an increase in distribution and selling expenses. EPS stood at PKR 0.91 in 3QFY25 (3QFY24 EPS: PKR 1.81).
  • During 3QFY25, IMAGE expanded its physical presence with three new stores: Multan, Gujrat, and a new outlet at Dolmen Mall Lahore, taking total outlets to 14 nationwide. An additional three outlets (DHA Phase VI Karachi, Giga Mall Rawalpindi, and F-6 Islamabad) are scheduled for launch by the end of CY25, which will bring the total to 17 brick-and-mortar stores. This accelerated rollout indicates management’s confidence in sustained foot traffic recovery and untapped urban demand.
Market Wrap: KSE-100 Stays Resilient Amid Budget Uncertainty - By HMFS Research

May 23 2025


HMFS Research


  • The KSE-100 index exhibited a choppy trajectory today as investor sentiment remained cautious ahead of the FY26 budget announcement. Ongoing discussions with the IMF and anticipation of new conditionalities kept market participants on edge, curbing aggressive positions. Still, broader optimism anchored in improving macroeconomic fundamentals— such as expected external financing from the UAE and World Bank, and renewed efforts to enhance trade and exports—offered some stability amidst the turbulence. After hitting an intraday high of +389 points, the index ultimately settled at 119,103, recording a marginal decline of 50 points. Market activity reflected a wait-and-see approach, with muted volumes of 99.8mn shares on the KSE-100 and 337.1mn shares traded overall. Leading the board were BBFL (33mn), WTL (19mn), and DOL (16mn). Going forward, the market is likely to remain sensitive to unfolding budgetary disclosures and IMF-related developments. Nonetheless, a constructive macroeconomic backdrop could provide the necessary support to steer equities toward recovery. Investors are advised to remain vigilant, closely track policy cues, and prioritize fundamentally sound stocks with long-term value potential.
Pakistan Aluminium Beverage Cans Limited (PABC): CY24 & 1QCY25 Corporate Briefing Takeaways - By Taurus Research

May 23 2025


Taurus Securities


  • PABC is the leading manufacturer of beverage cans in Pakistan. The Company is also Pakistan’s first and only manufacturer and exporter of aluminium cans.
  • During CY24, sales revenue increased 17%YoY clocking in at PKR 23Bn. The contribution of the exports to total revenue was around 63% during the year. Export sales increased 53%YoY to PKR 14.4Bn. Gross margin recorded a marginal decrease. Net profit for the year was recorded at PKR 6Bn compared to PKR 5Bn during the SPLY. The net profit margin recorded a marginal increase. As a result, EPS increased to PKR 16.9/sh from PKR 13.9/sh during the SPLY.
  • The Company reported a production of 936Mn cans in CY24, at a capacity utilization of 89%. The production capacity is 1.2Bn cans p.a.
Lalpir Power Limited (LPL): CY24 Corporate Briefing Key Takeaways - By Taurus Research

May 23 2025


Taurus Securities


  • LPL’s Power Purchase Agreement, originally due to expire in Nov’28, was terminated effective Oct 1, 2024, under a Negotiated Settlement Agreement. Receivables up to Sep 30, 2024—including CPP, EPP, and PTI—were cleared by Dec 31, 2024. Delayed payment interest was waived, resulting in significant reversals in the financials. The Company retains ownership of its 350MW oil-fired complex, and no further compensation was provided by the Government. CPPA-G will reimburse the Company for any adverse tax rulings if applicable.
  • Revenue declined 27%YoY to PKR 14.2Bn (CY23: PKR 19.5Bn), reflecting reduced dispatches ahead of PPA expiry. Gross profit fell to PKR 3.55Bn (CY23: PKR 5.6Bn), while PAT sharply dropped to PKR 465Mn from PKR 4.9Bn. This steep decline was primarily driven by non-recurring reversals—including furnace oil inventory written down to net realizable value due to low selling prices and the reversal of interest income due to waived charges under the settlement. EPS declined significantly to PKR 1.22 (CY23: PKR 12.1).
  • LPL reported surplus funds of PKR 9.8Bn as of Dec 31, 2024, ensuring liquidity strength post-PPA. However, Management clarified that it does not plan to distribute excess reserves via dividends in the near term. Instead, the focus is on pursuing high-potential ventures that can deliver superior long-term shareholder value.
Morning News: IMF not too ‘keen’ on relief steps in budget, links them to FBR revenue - By Vector Research

May 23 2025


Vector Securities


  • Signaling its reluctance to grant a major relief to the salaried, property, beverage, and export sectors, the visiting IMF team has linked the FBR’s tax collection target with reduction in expenditures. This is the crux of the ongoing parleys, as the team is going to accomplish its visit on Friday (today). However, the Fund will make an exception for the defence budget, as Islamabad will take an appropriate decision to hike the defence spending in view of the current geopolitical environment.
  • Prime Minister Shehbaz Sharif on Thursday met with a delegation from the World Bank, led by Managing Director of Operations Anna Bjerde, to discuss the Bank’s development investment and cooperation in Pakistan. The prime minister said the government is taking practical steps to maximize benefits from the World Bank’s investment under the Country Partnership Framework. He said the framework is expected to bring more than $20 billion in development financing to Pakistan.
  • Federal Minister for Power Sardar Awais Ahmad Khan Leghari met with a delegation led by Anna Bjerde, Managing Director Operations of the World Bank, to discuss Pakistan's ongoing power sector reforms. According to a press statement issued on Thursday, the minister shared plans to launch a competitive electricity market soon, noting that preparatory work is underway. An Independent System and Market Operator (ISMO) has been established, and experienced professionals are being appointed. The government will no longer be the sole electricity purchaser.
Morning News: Forex reserves exceed $16bn mark on IMF tranche - By WE Research

May 23 2025



  • Pakistan's foreign exchange reserves rose by $1.034 billion in one week, reaching $16.649 billion as of May 16, 2025, largely due to a $1.023 billion IMF loan tranche under the Extended Fund Facility (EFF). This marks the highest level in four months. While the State Bank of Pakistan’s (SBP) reserves increased, commercial banks' reserves dipped slightly by $9 million. The IMF also approved a $1.4 billion Resilience and Sustainability Facility (RSF) to help Pakistan address climate challenges and support growth. The IMF funds are expected to attract further international financial support, with SBP projecting reserves to exceed $14 billion by June 2025.
  • World Bank Managing Director Anna Bjerde praised Pakistan’s recent economic reforms as a “globally recognised model,” crediting Prime Minister Shehbaz Sharif’s leadership for driving the transformation. During a high-level meeting in Islamabad, Bjerde highlighted Sharif’s focus on sustainable policies, political unity, and development that prioritizes people. She referred to Pakistan’s Country Partnership Framework as the “Pakistan Model,” citing its successful implementation. Sharif thanked the World Bank for its support, especially following the 2022 floods, and noted the partnership will lead to over $20 billion in development investment. Both sides reaffirmed their commitment to continued collaboration.
  • Prime Minister Shehbaz Sharif met with a World Bank delegation led by Managing Director Anna Bjerde to discuss development cooperation and the Country Partnership Framework, which is expected to bring over $20 billion in financing to Pakistan. Sharif emphasized the government’s efforts to fully leverage this investment and thanked the World Bank for its support during the 2022 floods. Bjerde praised Pakistan’s progress on macroeconomic stability and called the partnership a global model, now referred to as the “Pakistan Model.” The meeting reaffirmed strong cooperation between Pakistan and the World Bank, with several senior officials in attendance.
Morning News: WB announces USD 55m in additional funding - By Alpha - Akseer Research

May 23 2025


Alpha Capital


  • Federal Minister for Power Sardar Awais Ahmad Khan Leghari met with a delegation led by Anna Bjerde, Managing Director Operations of the World Bank, to discuss Pakistan's ongoing power sector reforms.
  • Pakistan is targeting the export of 125,000 tonnes of mangoes in the current season, with an anticipated revenue of $125 million, the Pakistan Fruit and Vegetable Exporters Association (PFVA) announced. The export campaign is set to kick off on Sunday (May 25).
  • Honda Atlas Cars Pakistan Limited (HCAR) reported a net profit of Rs2.7 billion (EPS: Rs18.97) for the year ended March 31, 2025, marking a 16 per cent year-on-year (YoY) increase and surpassing industry expectations.
Market Wrap: Highlights of the day - By JS Research

May 22 2025


JS Global Capital


  • The market opened on a positive note on Thursday, with the index gaining 767 points to hit an intraday high of 120,699. However, the momentum faded as investors opted for profit-taking at higher levels, dragging the index down to an intraday low of 119,062 before closing at 119,153, down 778 points. Going forward, range-bound activity is likely to persist ahead of the Federal Budget announcement, and investors are advised to remain cautious."
Morning News: WB announces USD 55m in additional funding - By Alpha - Akseer Research

May 23 2025


Alpha Capital


  • Federal Minister for Power Sardar Awais Ahmad Khan Leghari met with a delegation led by Anna Bjerde, Managing Director Operations of the World Bank, to discuss Pakistan's ongoing power sector reforms.
  • Pakistan is targeting the export of 125,000 tonnes of mangoes in the current season, with an anticipated revenue of $125 million, the Pakistan Fruit and Vegetable Exporters Association (PFVA) announced. The export campaign is set to kick off on Sunday (May 25).
  • Honda Atlas Cars Pakistan Limited (HCAR) reported a net profit of Rs2.7 billion (EPS: Rs18.97) for the year ended March 31, 2025, marking a 16 per cent year-on-year (YoY) increase and surpassing industry expectations.
Economy: MPC likely to cut policy rate by 50bps - By Alpha - Akseer Research

May 2 2025


Alpha Capital


  • We anticipate the State Bank of Pakistan (SBP) to reduce the policy rate by 50bps in the upcoming MPC meeting on May 5th, 2025. The revised policy rate would settle at 11.5%. Our expectation is primarily driven by favorable economic factors, namely i) an improvement in external account, ii) a decline in headline inflation, and iii) falling global commodity prices. The geopolitical situation still remains fluid, with rising tensions on the eastern border alongside US-China trade war. These factors may influence the SBP to take a cautious stance and defer the rate cut until more clarity emerges.
  • The headline inflation is expected to settle within the SBP’s 5–7% medium-term target range in the next 12 months. A combination of falling imported inflation amid trade war and declining local food prices, backed by improved supply conditions, has dimmed the inflation outlook. Core inflation (NFNE) is also expected to taper off after being sticky at 9% since Dec-24, reinforcing our stance of a 50bps cut in the upcoming MPC meeting.
  • Pakistan’s current account posted an impressive surplus of USD 1.2bn in Mar-25, taking the cumulative 9MFY25 surplus to USD 1.9bn. The improvement was mainly backed by all-time high remittances, which surged to USD 4.1bn in Mar25, extending a sturdy support for the external account.
Pakistan Petroleum Limited (PPL): 2QFY25 EPS clocks in at PKR 10.02, down by 32% YoY, DPS PKR 2.00 - By Alpha - Akseer Research

Feb 28 2025


Alpha Capital


  • PPL announced its 2QFY25 financial result today wherein, the company reported an EPS of PKR 10.02, down by 32% YoY. Along with the result, the company announced an interim cash dividend of PKR 2.00/share.
  • Net sales clocked in at PKR 61.3bn during 2QFY25, compared to PKR 73.0bn in SPLY, down 16% YoY, due to PKR appreciation against the greenback (5% YoY) and a decline in oil/gas production (-13%/-10% YoY).
  • The company posted exploration expenses of PKR 5.3bn (-20% YoY) for 2QFY25 vs PKR 6.7bn in SPLY, due to reduced exploration activity during the quarter.
Oil & Gas Development Company Ltd (OGDC): 2QFY25 EPS clocks in PKR 9.63, down by 44% YoY, DPS PKR 4.05 - By Alpha - Akseer Research

Feb 28 2025


Alpha Capital


  • OGDC announced its 2QFY25 financial result today wherein the company reported an EPS of PKR 9.63, down by 44% YoY. Along with the result, the company announced an interim cash dividend of PKR 4.05/share.
  • Net sales for 2QFY25 clock in at PKR 100.4bn, compared to PKR 115.2bn in SPLY, down 13% YoY mainly on the back of a lower oil prices (-10.2% YoY), and an appreciating exchange rate (+5% YoY).
  • Exploration expenses climbed to PKR 4.0bn (+68% YoY) for 2QFY25 vs PKR 2.4bn in SPLY, due to a dry well encountered at Kandewaro-1.
Oil & Gas Development Company Limited (OGDC): 2QFY25 EPS expected to clock in at PKR 9.03, down by 48% YoY, DPS PKR 3.00 - By Alpha - Akseer Research

Feb 25 2025


Alpha Capital


  • OGDC is expected to announce its 2QFY25 results, wherein we expect the company to report an EPS of PKR 9.03, down by 48% YoY. Along with the result, the company is expected to announce an interim cash dividend of PKR 3.00/share.
  • Net sales for 2QFY25 expected to clock in at PKR 102.1bn, compared to PKR 115.2bn in SPLY, down 11% YoY mainly on the back of lower oil prices (-11.5% YoY), and a PKR appreciation of 1.8% YoY against the greenback.
  • Exploration expenses are projected at PKR 6.1bn (2.6x YoY) for 2Q FY 25 compared to PKR 2.4bn in SPLY, due to a dry well encountered at Kandewaro-1.
Economy: Feb-25 NCPI expected at 1.8% YoY - By Alpha - Akseer Research

Feb 20 2025


Alpha Capital


  • The headline CPI is expected to arrive at 1.8% YoY in Feb-24, continuing the declining inflation trend, following a reading of 2.4% YoY in Jan-24. We expect average inflation of 5.2% YoY for FY25 with a run rate of 0.6% MoM. The base effect continues to contribute to the declining inflation trend, bringing the print down to the lowest in two decades. MoM inflation is expected to decrease by 0.6% MoM for the first time since May-24, primarily due to the Food segment (down by 2.4% MoM) and a negative Fuel Charge Adjustment (FCA), reducing the average electricity tarrif. The Transport segment is expected to exhibit an increasing trend (up by 1.1% MoM) owing to the rising POL prices.
  • The Food segment is expected to decline by 2.4% MoM in Feb-25. Items driving the reduction in prices include: tomatoes (-54.6% MoM), onions (-27.4% MoM) and potatoes (- 20.8% MoM). Additionally, wheat prices are expected to reduce by 2.3% MoM due to abolishment of wheat support price, as per the agreement with the IMF.
  • The Utilities segment is expected to stay flattish (up by 0.1% MoM) on the back of a negative FCA of PKR 1.23/kwh for Dec-24, which is expected to reduce average electricity tariff for consumers in Feb-24.
Oil & Gas Marketing Companies: Higher growth ahead, Still a Buy - By Alpha - Akseer Research

Feb 7 2025


Alpha Capital


  • FY24 was a tumultuous year for Oil Marketing Companies (OMCs), characterized by demand destruction, elevated fuel prices, and a resurgence of smuggling activities from across the border, all of which hurt the OMC industry. However, the start of FY25 has been promising, and the outlook for the sector is positive as we witness a significant rebound in sales volumes. The past six months have been favorable for OMCs due to high volumetric sales, primarily driven by increased demand for Motor Spirit (MS) and High-Speed Diesel (HSD).
  • The growth in MS and HSD sales reflects a recovery in economic activity, particularly in the transportation and agricultural sectors, driven by falling commodity prices. We believe with the economic conditions stabilizing, further growth in MS and HSD sales volume is expected. Inflation has been steadily coming down, with the average inflation during CY24 recorded at 13.1%, compared to 30.9% last year. This is coupled with a projected GDP growth of 2.8% and a gradual recovery in large-scale manufacturing and service sectors, which will stimulate demand.
  • The government is expected to approve an increase in the OMC margins in Feb’25 following a recommendation by OGRA to increase margins from PKR 7.86/l to PKR 9.22/l. This is in line with the CPI-linked methodology of implementing margins and has been long overdue. An increase in margins will set the sector up for profitability.
Morning News: Don’t take GSP+ for granted, says EU envoy: - By Alpha - Akseer Research

Jan 31 2025


Alpha Capital


  • The European Union has warned Pakistan not to take its GSP+ status for granted.
  • Minister for Finance Muhammad Aurangzeb said the legislation concerning the Agriculture Income Tax had been approved by the two provincial assemblies and the IMF was fully cognisant that progress was underway in Sindh and Balochistan.
  • The State Bank of Pakistan Governor, Jamil Ahmed, has said that exporters are being provided with all possible facilities to increase the country’s exports.
Economy: Revenue surplus expected to drop to PKR 4bn - By Alpha - Akseer Research

Jan 27 2025


Alpha Capital


  • As part of the IMF's conditions for the release of the USD 7bn tranche, Pakistan was required to terminate gas supplies to captive power producers (CPPs) by January 2025. This measure was intended to encourage a shift towards increased reliance on gridbased electricity consumption. However, following sustained efforts, the Economic Coordination Committee (ECC) succeeded in negotiating more favourable terms for CPPs.
  • Under the initial proposition, gas supply to the specified plants was to be discontinued by January 31st, 2025. However, the Government of Pakistan (GoP), while maintaining the gas supply for CPPs, has approved an increase in tariffs for CPPs, revising the rate from PKR 3,000/MMBTU (effective July 2024) to PKR 3,500/MMBTU (effective February 2025). All other categories, including domestic consumers, will remain unaffected by this tariff adjustment.
  • A total of 480 CPPs operate on the SNGPL network (54 MMCFD) and 800 on the SSGC network (118 MMCFD). With limited availability of capital, we anticipate minimal decline in demand in the short run. Additionally, the ECC has approved the imposition of a grid transition levy which penalises captive power, forcing the shift to grid power, thereby releasing the downward pressure on grid power consumption amid falling LSM index (-1.25% YoY) and transitions to solar power.
Economy: Dec-24 NCPI expected at 4.3% YoY, lowest since Apr-18 – By Alpha - Akseer Research

Dec 27 2024


Alpha Capital


  • The headline CPI is expected to arrive at 4.3% YoY in Dec-24, continuing the declining inflation trend, following a reading of 4.9% YoY in Nov-24. This is expected to take 1HFY25 average inflation to 7.3% YoY. MoM inflation is expected to remain flattish, up by 0.3% MoM, primarily on the back of (i) a muted trend in the Food segment, (ii) a -1.1% MoM decrease in utilities segment due to a reduction in electricity charges, and (iii) a 0.7% MoM increase in Transport segment due to a rise in POL prices.
  • The Food segment is expected to stay flat with a slight increase of 0.2% MoM in Dec-24, indicating winter effect on perishable food items. Within this category, items driving the reduction in prices include: wheat flour (-2% MoM), chicken (-13% MoM), and tomatoes (-14% MoM).
  • Electricity tariff for Dec-24 depicts the continuation of a downward trend due to (i) a negative FCA of PKR 1.145/kwh, (ii) an updated QTA of PKR 0.196/kwh, and (iii) the introduction of Winter Demand Initiative (WDI) offering a discount on incremental consumption to domestic consumers (using above 200 units). Cumulatively, we expect these developments to reduce electricity charges by 5.9% MoM in Dec-24 and, consequently, a 1.1% MoM fall in the Utilities segment in the NCPI print.