Morning News: Key policy rate slashed by 100bps to 11pc - By WE Research

May 6 2025



  • The State Bank of Pakistan's Monetary Policy Committee (MPC) cut the key policy rate by 100 basis points to 11%, citing a sharp drop in inflation due to lower electricity tariffs and easing food prices, bringing the total rate cut since June 2024 to 11 percentage points. Inflation fell to 0.3% year-on-year in April, and core inflation also declined, while real GDP grew by 1.7% in Q2-FY25, driven by improved remittances, a current account surplus, and rising business confidence. Despite some weak industrial segments and agricultural output challenges, the MPC maintained its FY25 growth forecast at 2.5– 3.5% and projected further improvement in FY26, though risks remain from global uncertainty, supply -chain issues, and volatile commodity prices. Foreign exchange reserves are expected to rise to $14 billion by June 2025, and the fiscal deficit is likely to remain on target despite challenges in meeting the primary surplus goal, highlighting the need for sustained reforms in taxation and state-owned enterprises.
  • Efforts are underway to project Pakistan’s real GDP growth at around 3% for FY2024–25, despite low investment and savings rates and weak performance in key sectors. Concerns have been raised over the credibility of this target, especially with contractions in Large Scale Manufacturing (LSM), which declined 1.9% in Jul–Feb FY25, and a significant drop in major crop output, including cotton (down 33%) and maize. Although second-quarter growth was boosted—partly by historically high livestock estimates—reaching 3% would require a nearly 5% growth in the third quarter, which seems unlikely given current sectoral trends. Agriculture remains weak due to water shortages and low crop yields, while multilateral institutions project GDP growth between 2–2.6%. Despite this, internal government bodies, including the Ministry of Planning and Finance, appear eager to portray a higher growth trajectory ahead of the upcoming Economic Survey. The final provisional GDP estimate is expected by May 20, 2025, although independent experts argue growth may not exceed 2% based on the current data trajectory.
  • In April 2025, Pakistan’s overall Business Confidence Index (BCI) rose by 0.4 points to 56.9, according to the latest Business Confidence Survey conducted by the State Bank of Pakistan and IBA, driven by improvements in both the Industry and Services sectors. The Current Business Confidence Index (CBCI), reflecting perceptions over the past six months, climbed 0.9 points to 56, while the Expected Business Confidence Index (EBCI) remained stable at 57.8. The Purchasing Managers Index (PMI) also improved by 0.7 points to 53.5, signaling moderate expansion. Businesses’ inflation expectations rose slightly by 0.2 points to 64.2. Notably, the Expected Employment Index increased by 1.3 points to 55.3, with both industry and services sectors showing gains. Additionally, capacity utilization in the manufacturing sector edged up by 0.4% to 64.8%, indicating a slight uptick in production activity

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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: $2.5bn surplus in trade with US: Aurangzeb - By WE Research

May 22 2025



  • Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, reported that Pakistan recorded a trade surplus of $2.5 billion with the United States during the current financial year 2024-25 (up to March), with exports at $4.4 billion and imports at $1.9 billion. In the previous year, 2023-24, exports were $5.3 billion and imports $2.2 billion, resulting in a $3.1 billion surplus. Key exports include garments and medical instruments, while major imports consist of cotton, steel scrap, computers, and petroleum products. The U.S. has imposed a 30% reciprocal tariff on Pakistani imports, currently suspended for 90 days, which exporters see as a challenge but also a potential opportunity due to higher tariffs on competitors. In response, the prime minister has formed a Steering Committee and a working group, with the Ministry of Commerce coordinating a comprehensive strategy to engage with U.S. authorities.
  • Gold prices in Pakistan rose significantly on Wednesday, with 24-karat gold reaching Rs349,400 per tola after an increase of Rs6,600, and 10 grams priced at Rs299,554, up Rs5,659, according to the AllPakistan Gems and Jewelers Sarafa Association. The price of 22-karat gold also increased to Rs274,601 per 10 grams. Silver prices followed suit, with 24-karat silver rising to Rs3,466 per tola and Rs2,971 per 10 grams. Internationally, spot gold traded near $3,302 an ounce, up 0.39%, marking its third consecutive daily gain, driven by a softer dollar and heightened safe-haven demand amid global economic and geopolitical uncertainties.
  • Pakistan’s per capita income rose by 9.75% to a record $1,824 in FY2024–25, up from $1,662 the previous year, with the economy’s total size reaching $410.96 billion—a 2.68% annual increase—according to provisional estimates by the Pakistan National Accounts Committee (NAC). In rupee terms, per capita income grew 8.27% to Rs509,174. This growth, driven mainly by a 3.99% rise in the services sector and a modest 1.18% increase in agriculture, helped Pakistan join the world’s 40 largest economies, despite a continued 1.14% contraction in the industrial sector. The NAC also revised earlier quarterly GDP growth estimates and finalized FY23 growth at -0.21% and FY24 at 2.51%. Analysts see the rebound as a sign of resilience amid global and domestic challenges, marking the highest GDP since FY18, when it last approached similar levels before facing economic and political instability.
Morning News: Key policy rate slashed by 100bps to 11pc - By WE Research

May 6 2025



  • The State Bank of Pakistan's Monetary Policy Committee (MPC) cut the key policy rate by 100 basis points to 11%, citing a sharp drop in inflation due to lower electricity tariffs and easing food prices, bringing the total rate cut since June 2024 to 11 percentage points. Inflation fell to 0.3% year-on-year in April, and core inflation also declined, while real GDP grew by 1.7% in Q2-FY25, driven by improved remittances, a current account surplus, and rising business confidence. Despite some weak industrial segments and agricultural output challenges, the MPC maintained its FY25 growth forecast at 2.5– 3.5% and projected further improvement in FY26, though risks remain from global uncertainty, supply -chain issues, and volatile commodity prices. Foreign exchange reserves are expected to rise to $14 billion by June 2025, and the fiscal deficit is likely to remain on target despite challenges in meeting the primary surplus goal, highlighting the need for sustained reforms in taxation and state-owned enterprises.
  • Efforts are underway to project Pakistan’s real GDP growth at around 3% for FY2024–25, despite low investment and savings rates and weak performance in key sectors. Concerns have been raised over the credibility of this target, especially with contractions in Large Scale Manufacturing (LSM), which declined 1.9% in Jul–Feb FY25, and a significant drop in major crop output, including cotton (down 33%) and maize. Although second-quarter growth was boosted—partly by historically high livestock estimates—reaching 3% would require a nearly 5% growth in the third quarter, which seems unlikely given current sectoral trends. Agriculture remains weak due to water shortages and low crop yields, while multilateral institutions project GDP growth between 2–2.6%. Despite this, internal government bodies, including the Ministry of Planning and Finance, appear eager to portray a higher growth trajectory ahead of the upcoming Economic Survey. The final provisional GDP estimate is expected by May 20, 2025, although independent experts argue growth may not exceed 2% based on the current data trajectory.
  • In April 2025, Pakistan’s overall Business Confidence Index (BCI) rose by 0.4 points to 56.9, according to the latest Business Confidence Survey conducted by the State Bank of Pakistan and IBA, driven by improvements in both the Industry and Services sectors. The Current Business Confidence Index (CBCI), reflecting perceptions over the past six months, climbed 0.9 points to 56, while the Expected Business Confidence Index (EBCI) remained stable at 57.8. The Purchasing Managers Index (PMI) also improved by 0.7 points to 53.5, signaling moderate expansion. Businesses’ inflation expectations rose slightly by 0.2 points to 64.2. Notably, the Expected Employment Index increased by 1.3 points to 55.3, with both industry and services sectors showing gains. Additionally, capacity utilization in the manufacturing sector edged up by 0.4% to 64.8%, indicating a slight uptick in production activity
Morning News: Pakistan’s real growth forecast stays unchanged: State Bank - By WE Research

Apr 29 2025



  • The State Bank of Pakistan (SBP) projects a more optimistic macroeconomic outlook for FY25, citing improving economic indicators, easing financial conditions, and stronger external balances, with real GDP growth expected between 2.5% and 3.5%. While positive trends like declining commodity prices, rising remittances, and improved exports support this view, risks remain, including global protectionist policies, geopolitical tensions, and potential inflation resurgence. Inflation is now projected lower at 5.5–7.5%, down from earlier estimates of 11.5–13.5%, aided by fiscal consolidation, stable energy prices, and food supply. However, fiscal risks such as potential tax revenue shortfalls and weak agricultural performance—particularly in wheat—could limit growth. The SBP’s report underscores that Pakistan’s outlook remains sensitive to external shocks, particularly in trade and global financial markets.
  • In the first half of FY25, Pakistan’s macroeconomic conditions improved notably, with headline inflation falling to a multi-decade low of 0.7% by March 2025, the current account turning surplus, and the fiscal deficit reaching its lowest level in 20 years, largely due to fiscal consolidation, tight monetary policy, and favorable global commodity trends. The State Bank of Pakistan (SBP) attributed these gains to a coordinated policy stance, IMF program support, and improved credit ratings. Despite easing inflation and a 1000 basis point cut in policy rate from June 2024 to February 2025, real GDP growth remained modest due to weak Kharif crop production and industrial contraction, though services showed relative strength. A rise in exports and remittances also helped bolster foreign reserves. However, the SBP warned of long-term challenges, emphasizing that weak productivity growth has undermined competitiveness and contributed to economic volatility, calling for structural reforms to enhance productivity and economic resilience.
  • In the first nine months of FY25, Pakistan’s salaried class paid a record Rs391 billion in income tax— nearly 10% of the country’s total income tax collection—highlighting a starkly disproportionate burden compared to other sectors like traders and retailers, who contributed far less. This represents a 56% increase from last year and already exceeds the government’s full-year target by Rs140 billion. Despite paying taxes on gross income without deductions and bearing the brunt of policy changes like reduced tax slabs and surcharges, their plight was not addressed in recent IMF negotiations. In contrast, retailers and wholesalers, many unregistered, paid a fraction of this amount, undermining the fairness of the tax system. With the IMF team set to review Pakistan’s budget in May, officials suggest high salaried-class collections might deter tax relief. Meanwhile, the Federal Board of Revenue (FBR) faces revenue shortfalls, attributing underperformance to slower economic growth and inflation, despite Rs1.3 trillion in new taxes introduced in the current budget.
Morning News: Trade gap with ME widens - By WE Research

Apr 15 2025



  • Pakistan’s trade deficit with the Middle East widened by 9.75% to $9.35 billion in the first eight months of FY25, mainly due to a surge in petroleum imports, particularly a 20.29% increase in crude oil volumes. While exports to the region rose modestly—by 3.56% to $2.095 billion—imports jumped 8.56% to $11.44 billion during the same period. Despite a narrowing of the trade gap in FY24 due to lower petroleum consumption, the deficit has grown again, raising concerns. Pakistan recently signed a free trade agreement with GCC states to address the imbalance, with notable export growth to the UAE, Saudi Arabia, and Qatar. Exports to Saudi Arabia rose 10.59% and to the UAE by 5.84% during July-February, while imports from both also fluctuated. However, exports to Bahrain, Kuwait, and Qatar declined significantly, while imports from these countries mostly increased, further contributing to the widening trade deficit.
  • In the upcoming 2025–26 federal budget, the Pakistani government is expected to raise taxes on a wide range of food and beverage items to increase tax revenue. Proposed measures include doubling the excise duty on soft drinks, sweetened beverages, and juices from 20% to 40%, while introducing a new 20% tax on industrial dairy products. Meat products, bakery goods, and confectionery items— such as chocolate, pastries, and cereals—are also likely to face a 50% tax increase, along with frozen desserts and products made from animal or vegetable fats. These tax hikes are planned to be implemented gradually over three years. Simultaneously, the defence budget is set to increase by Rs159 billion to Rs2,281 billion for FY26, marking a 7.49% rise from the previous year and a Rs263.2 billion increase since FY24, highlighting a continued focus on national security amid broader fiscal reforms.
  • Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high-level meeting on priority sector lending aimed at aligning Pakistan’s financial sector with the government's export-led growth agenda. Attended by key officials from the State Bank, the Pakistan Banks Association, and leading banks, the session emphasized the banking sector's vital role in facilitating foreign direct investment and supporting export-oriented industries. The minister highlighted the successful Pakistan Minerals Summit and Maersk Line’s $2 billion investment in maritime infrastructure as indicators of investor confidence. He stressed the need for sustainable, investment-led economic growth, avoiding past boom-bust cycles. Notably, this year’s budget process was initiated early, incorporating stakeholder feedback from commerce chambers. Zafar Masud of the PBA presented updates on banking support for agriculture, SMEs, and digital sectors, including initiatives like electronic warehouse receipt finance and SME performance indices. The minister concluded with a call for coordinated efforts to develop fintech-driven credit solutions for smallholder farmers and to ensure long-term economic transformation rooted in stability, inclusivity, and resilience.
Morning News: IMF team due next week to discuss taxation proposals for next budget - By WE Research

Apr 11 2025



  • A technical team from the IMF is scheduled to visit Pakistan starting April 14, 2025, to engage in discussions with senior officials of the Federal Board of Revenue (FBR) regarding taxation proposals for the FY2025-26 budget. The talks will focus on expanding the tax base by bringing retailers and other untaxed sectors under the tax net, while the government is also considering reducing tax rates for the salaried class. Both parties are expected to explore the inclusion of high-income pensioners in the tax framework. Meanwhile, the IMF’s governance and anti-corruption diagnostic team will be concluding its visit. Additionally, a high-level Pakistani delegation, headed by Finance Minister Mohammad Aurangzeb, will attend the annual spring meetings of the IMF and World Bank in Washington, D.C., from April 21 to 26, 2025.
  • Prime Minister Shehbaz Sharif has halted a proposal to waive the 18% sales tax on local supplies of commodities, raw materials, and machinery to registered exporters under the Export Facilitation Scheme (EFS), due to concerns over potential objections from the IMF. The proposal, originally put forth by a committee led by Planning Minister Ahsan Iqbal, aimed to restore tax exemptions and reintroduce insurance guarantees to address anomalies that favor imports over local procurement—an issue impacting domestic industries like ginning factories. While some officials suggested revisiting the matter with the IMF, the Prime Minister rejected the idea, instead calling for a balanced solution that does not disadvantage local producers. The government is considering imposing the same 18% tax on imports to level the playing field. The PM emphasized boosting exports remains a top priority and urged the committee to incorporate industry feedback and develop consensus-based recommendations. The EFS, launched in 2021, has undergone stricter controls in recent months to curb misuse, including reduced utilization periods and enhanced monitoring.
  • Pakistan’s total liquid foreign exchange reserves increased by $173 million during the week ending April 4, 2025, reaching $15.75 billion, according to the State Bank of Pakistan (SBP). This rise includes a $23 million gain in SBP-held reserves, which stood at $10.699 billion, up from $10.676 billion the previous week. Additionally, net reserves held by commercial banks saw a notable increase of $150 million, reaching $5.053 billion compared to $4.903 billion the week before.
Fauji Cement Company Limited (FCCL): Poised for Continued Growth - Market Weight - By WE Research

Mar 18 2025



  • Since Jan’2024, the Pakistan cement sector has witnessed a swift recovery on the back of anticipated interest cut, where the industry stock performance increased by 46%. Among the local peers, FCCL has been the key driver on this rally, delivering an 92% return, with its share price surging from PKR 18.95/sh on January 1, 2024, to PKR 36.4/sh on January 1, 2025. However, despite this strong market performance, cement dispatches in CY24 remained stagnant/low, where local demand reached at 38.2 Mn tons, depicting a decline of 4.5% YoY. However, we expect FY25 to be a strong year for the industry, driven by lower interest rates and enhanced purchasing power across both consumer and industrial sectors, where we anticipated local dispatches to clock in at 38Mn tons 4% YoY increase from FY25.
  • We have a Market Weight stance on FCCL, with a DCF-based target price of PKR 64.40 per share for DEC’25 offering 40% upside potential. FCCL is currently valued at ~US$39.17EV/ton compared to 5-year average of ~US$32.65EV/ton. On EV/EBIDTA basis, stock is trading at ~11.07x as compared to 5-year average of ~6x.
  • Our liking for the stocks emanate from 1) Healthy gross margins driven by cost efficiency initiatives, 2) Recent capacity expansion to enhance market footprint, 3) Strong cash flow led to higher payouts & 4) Reducing interest rate to increase profitability.
Morning News: Economy seen growing at 3.4pc in FY25 – By WE Research

Jan 13 2025



  • Pakistan's economy is showing signs of recovery from the 2022-23 downturn, with a projected 3.4% GDP growth in FY25, according to the United Nations' latest economic survey. The IMF’s 37-month Extended Fund Facility (EFF) program, worth $7 billion, aims to address structural challenges, promote economic stability, and foster sustainable growth by focusing on reforms, policy credibility, competitiveness, state-owned enterprises, and climate resilience. Despite these efforts, risks such as geopolitical tensions, debt challenges, social unrest, and climate-related shocks, including extreme weather events, could hinder growth. The South Asian region is expected to see moderate GDP expansion, with inflation decreasing across most countries, including Pakistan, which has reduced key policy rates to support recovery. However, the region remains vulnerable to climate impacts, which have led to increased food prices and income inequality, particularly affecting rural households.
  • Pakistan saw a significant increase in workers' remittances, with $3.1 billion inflows in December 2024, reflecting a 29.3% year-on-year growth and a 5.6% month-on-month rise. Cumulatively, remittances reached $17.8 billion in the first half of FY25, up 32.8% from the previous year. Major sources included Saudi Arabia, the UAE, the UK, and the US. Analysts attribute the surge to efforts that narrowed the gap between black market and interbank exchange rates, a stable rupee, and the Pakistan Stock Exchange's strong performance. With ongoing government measures to regulate the remittance sector, including tighter controls on smuggling and improved documentation, remittance inflows are expected to exceed $35 billion by the end of FY25, a 35% increase from FY24. While improvements in dollar-rupee parity have bolstered this trend, experts caution against policies favoring export lobbies, arguing for broader currency stabilization measures.
  • Inflows through Pakistan's Roshan Digital Account (RDA) reached $203 million in December 2024, marking a 9% increase from November's $186 million, according to the State Bank of Pakistan (SBP). Of the December inflows, $13 million was repatriated, and $113 million was used locally, with a net repatriable liability of $76 million. The total number of RDA accounts grew to 778,713, up by 10,319 from the previous month. Cumulatively, RDA inflows reached $9.342 billion, with $1.7 billion repatriated and $5.911 billion utilized locally. The net outstanding liability was $1.73 billion as of Decemberend, with a significant portion in Naya Pakistan Certificates. Additionally, Roshan Equity Investments saw a 16% increase to $59 million. Launched in 2020, the RDA has become a crucial source of foreign exchange for Pakistan, offering competitive returns on dollar investments.