Pakistan Economy: Federal Government Fiscal Operations – By Topline Research

Aug 5 2025


Topline Securities


  • Pakistan recorded a 9-year low fiscal deficit of 5.38% in FY25, thanks to 36% YoY growth in both tax and non-tax revenues combined vs. 18% growth in total expenditures. The deficit of 5.38% is better than government’s revised forecast of 5.6% of GDP (earlier budgeted 5.9%) for FY25. Similarly, IMF also projected deficit at 5.6% of GDP.
  • Overall revenues have grown 36% YoY amidst 66% increase in non-tax revenues led by robust dividend of Rs2.62trn (vs. Rs0.97trn in FY24) from SBP amidst higher interest rates and expanded balance sheet.
  • While tax revenues have grown 26% YoY led by 26% growth in FBR revenues. In last 5 years FBR revenues (including PDL) have increased 3.02x from Rs4.3trn in FY20 to Rs12.9trn in FY25. While size of GDP during same period has increased 2.75x from Rs41trn to Rs114.6trn.
Pakistan Economy: Aug’25 CPI likely to clock in at 4.1% - By Insight Research

Aug 29 2025


Insight Securities


  • Headline inflation is estimated at ~4.1% for Aug’25, compared to ~9.6% in SPLY and ~4.1% in preceding month. On MoM basis, inflation is expected to inch up by ~0.4%, amid increase in prices of food items the impact of which has been negated by lower electricity charges and decline in LPG price.
  • Within the SPI basket, items that recorded significant increase in prices during the period are as follows, Tomato (38.8↑%), Onions (21.5↑%), Eggs (9.9%↑), Fresh vegetables (4.0%↑) & Wheat (4.0%↑). On the flip side, prices of the following items eased off during the month, Fresh fruits (9.9%↓), LPG (9.8%↓), Potato (5.1%↓), Pulse moong (4.6%↓) & Sugar (4.1%↓).
  • We anticipate that the SBP will keep the policy rate unchanged in upcoming MPC, as the full impact of cumulative 1,100bps reduction in policy rate is still unfolding. The real sector remains in recovery mode following the strain of elevated inflation and sharp currency depreciation, both of which eroded purchasing power of masses. Furthermore, central bank’s tone in the last MPC suggested a pause for now, which will provide clarity to the market and encourage credit offtake in the coming months, given that no immediate cut in borrowing costs is expected. Hence, it appears prudent to maintain the policy rate at its current level and wait for the steep decline in interest rates to translate into real economic activity.
Bank Islami Pakistan Limited (BIPL): 2QCY25 Corporate Briefing – By Taurus Research

Aug 29 2025


Taurus Securities


  • BIPL is currently operating with 544 branches across Pakistan. Number of accounts as of Jun’25 are ~1.7Mn.
  • During CY25, the Bank launched AIK Digital App, which is one of its kind Islamic digital app, offering complete digital banking experience. The Bank is also planning to relocate its head-office, for which it has acquired a 32-storey building. Moreover, the Bank has also upgraded its core banking system to R-14 to enhance operational efficiencies and services.
Engro Holdings Limited (ENGROH): 1HCY25 Analyst Briefing Takeaways – By Foundation Research

Aug 29 2025


Foundation Securities


  • Engro Holdings Limited (ENGROH PA) held its Analyst Briefing to discuss the company’s financial/operational performance during 1HCY25 and prospects. The following are key takeaways of the session.
  • To recall, ENGROH’s PAT underwent a jump of 11.3x YoY in 2Q to PKR 69.3Bn due to thermal asset adjustments and re-measurements. However, excluding thermal asset adjustments, normalized PAT stood at only ~PKR 1.3Bn, reflecting the true underlying business performance. During 1HCY25, PAT reached PKR 73.3Bn versus PKR 13.8Bn in SPLY, recording a 5.3x YoY increase.
Morning News: ADB pledges $410m for Reko Diq project – By IIS Research

Aug 29 2025


Ismail Iqbal Securities


  • Out of the total $6 billion funding committed by all international lenders for Reko Diq, the Asian Development Bank (ADB) has committed to provide financing of $410 million.
  • Federal Minister for Petroleum Ali Pervaiz Malik on Thursday welcomed the interest of the Japan Bank for International Cooperation (JBIC) in Pakistan’s landmark Reqo Diq mining project, terming it a pivotal moment for strengthening bilateral cooperation in the mining and energy sectors.
Technical Outlook: KSE-100 targeting the 30-DMA; stay cautious – By JS Research

Aug 29 2025


JS Global Capital


  • The KSE-100 index witnessed range bound activity to close at 147,344, down 151 points DoD. Volumes stood at 935mn shares compared to 857mn shares traded in the previous session. The index is expected to test support between 146,700 and 147,210 levels as a fall below, will extend the decline towards 146,057, followed by the 30-DMA at 143,859 level. However, any upside will face resistance in the range of 148,040-148,370 levels. The RSI and the MACD are moving down, supporting a corrective view. We recommend investors to stay cautious at current levels. The support and resistance are at 147,021 and 147,854 levels, respectively.
Morning News: SBP forex reserves rise by USD 18mn to USD 14.27bn – By Alpha-Akseer Research

Aug 29 2025


Alpha Capital


  • Pakistan’s foreign exchange reserves held by the central bank rose for a third straight week and stood at USD 14.27bn as of August 22, the State Bank of Pakistan (SBP) said on Thursday.
  • Following the ongoing sugar crisis, Pakistan may now face a potential wheat flour crisis, as national wheat stocks stand at 33.47mn tons, slightly below the country’s annual consumption requirement of 33.58mn tons.
Morning News: RLNG arrears recovery: PD-private sector ‘alliance’ takes on Ogra – By HMFS Research

Aug 29 2025


HMFS Research


  • The Power Division and the private sector on Thursday appeared to have formed an undeclared alliance against the Oil and Gas Regulatory Authority (Ogra) over the recovery of RLNG arrears from 2015 to 2024 — a move that, if enforced, would impact both industry and power plants, with the ultimate burden shifting to electricity consumers. The joint position was evident during a public hearing at the National Electric Power Regulatory Authority (NEPRA) regarding uniform Fuel Charges Adjustment (FCA) for July 2025 across the country, including K-Electric’s service area.
  • Pakistan’s economic stability faces renewed challenges as the Finance Division warns that flood-related damages could intensify fiscal pressures and disrupt food supplies across affected areas as well as pose a risk in achieving agriculture sector’s targeted growth. The monthly economic update and outlook August 2025 noted that adverse climatic events (heavy rainfall and floods) pose a risk in achieving agriculture sector’s targeted growth.
D.G. Khan Cement Company Limited (DGKC): Result Review — Earnings rise on surging margins – By AKD Research

Aug 28 2025


AKD Securities


  • D.G. Khan Cement Company Ltd. (DGKC) announced its 4QFY25 financial results, reporting earnings of PkR3.2bn (EPS: PkR7.2), compared to a loss of PkR1.7bn (LPS: PkR3.9) in SPLY. The result is above our expectations, mainly due to im proved margins and lower ETR during the quarter. Additionally, company an nounced a final cash payout of PkR2.0/sh.
  • Revenue declined by 1%YoY to PkR16.8bn, compared to PkR17.0bn in SPLY, driven by 1.2%YoY decline in total offtakes to 1.28mn tons.
  • Gross margins improved to 31.8% from 7.9% in SPLY, supported by decline in coal prices and grid tariffs.
Pakistan Floods: Historical Impact – By CHASE Research

Aug 28 2025



  • Pakistan is currently at the cusp of widespread floods due to its eastern rivers overflowing as a result of monsoon rains and release of water from Indian dams. As such, we believe it is important to assess the impact of past floods to determine whether equity markets will be impacted.
  • In this report, we look over the KSE100 index performance and impact on different sectors during flooding years to determine whether these floods will impact broader market sentiment and growth in fertilizer and cement demand.
Archroma Pakistan Limited (ARPL): 9MSY25 Corporate Briefing Takeaways – By Taurus Research

Aug 28 2025


Taurus Securities


  • Archroma Pakistan Limited is primarily engaged in the manufacture, import, and sale of dyes and other specialty chemical solutions. It is a subsidiary of the Switzerland-based company, Archroma Textiles GmbH. ARPL has two business divisions: textile effects and packaging technologies with a combined portfolio of between 300-400 products. APRL’s products are used in the pre-treatment, dyeing, printing, and finishing of textiles, and coloration and coatings of packaging materials. The Company’s products help enhance both the optical as well as the functional properties of its clients’ end products.
  • The textile effects division has four markets with several segments within each. These are: apparel (denim, casual wear, performance apparel, and formal war), home textiles (home and institutional, automotive), specialized textiles (technical textiles, protection textiles), and home care (personal care, plastics, and leather). This division serves customers from a wide range of industries such as textile, healthcare, cosmetics (anti-perspirant agents), construction (protective clothing), and producers of household care products such as detergents, dishwashing liquids, and other cleaning products.
Pakistan Economy: Rising Wheat and Sugar prices – By Topline Research

Aug 27 2025


Topline Securities


  • Wheat prices in Pakistan have surged to a 19-week high of Rs710/10kg which translates into Rs.2,839/40kg, while some local market sources quote prices at ~Rs.3,000-3,050/40kg. This sharp recovery is expected to serve as a strong incentive for farmers ahead of the next sowing season.
  • The price rebound is timely, given that farmer sentiment had weakened due to depressed returns in the previous crop cycle.
  • The agriculture sector has witnessed a sharp slowdown in FY25, with growth declining to a meagre 0.6% compared to 6.4% in FY24.
Technology & Communication: IT Exports Reach Record High of US$354mn in Jul-25 – By Topline Research

Aug 25 2025


Topline Securities


  • Pakistan recorded all-time-high monthly IT exports of US$354mn in Jul-2025, up by 24% YoY and by 5% MoM. These monthly IT exports in Jul-2025 are higher than last 12-month average of US$317mn.
  • Export proceeds per day were recorded at US$15.4mn for Jul-25 vs. US$17.8mn in Jun-25.
  • Under total IT exports, computer services grew by 10% MoM to US$311 in Jul-2025, primarily driven by software consultancy exports, which increased to US$104mn from US$96mn in Jun 2025.
Meezan Bank Limited (MEBL): Corporate Briefing Takeaways – by Topline Research

Aug 20 2025


Topline Securities


  • Meezan Bank (MEBL) conducted its 2Q2025 Corporate Briefing Session today where management discuss financial performance and future outlook.
  • On deposit side, management commented that, the average deposits in Meezan were largely equal to the quarter end (2Q – Jun 2025) and presently deposits are standing well above Rs3trn. Industry deposits have declined in last 1.5 months due to quarter end effect of Jun (which increased deposits from Rs32trn to Rs35trn in last 2 weeks of Jun).
  • We maintain BUY stance on bank as it currently trades at 2025E PE of 9.0x and PBV of 2.7x with dividend yield of 7%.
International Steels Limited (ISL): FY25 EPS at Rs3.58, down by 57% YoY (Earnings higher than expectations) – By Topline Research

Aug 20 2025


Topline Securities


  • ISL announced its FY25 result today, where the company recorded earnings of Rs1,559mn (EPS of Rs3.58), down by 57% YoY.
  • During 4QFY25, company recorded earnings of Rs608mn (EPS of Rs1.4), up 2% YoY and 46% QoQ.
  • The result came above expectations as 4QFY25 reported higher-than-expected gross margins of 10.68%, compared to 10.15% in 4QFY24 and 7.78% in 9MFY25, indicating a significant improvement over the 9M trend.
Pakistan State Oil Company (PSO): Earnings lower than industry expectations – By Topline Research

Aug 19 2025


Topline Securities


  • Pakistan State Oil Company (PSO) announced its FY25 results today, reporting an unconsolidated profit of Rs20.9bn (EPS: Rs44.54). The earnings were below industry expectations due to higher taxation.
  • Company recorded 4QFY25 earnings at Rs5.6bn (EPS of Rs12.02) compared to 4QFY24 profit of Rs2.5bn (EPS of Rs5.25), up 2.3x YoY and 38% QoQ.
  • Net sales for 4QFY25 declined by 10% YoY but increased 14% QoQ to Rs813bn. The QoQ rise was driven by an 39% and 26% increase in HSD and MS sales, respectively. While YoY fall is due to a 7% and 9% fall in HSD and MS prices in 4QFY25 vs 4QFY24.
Systems Limited (SYS): Result Review – By Topline Research

Aug 19 2025


Topline Securities


  • Systems Limited (SYS) announced its 2Q2025 result wherein it posted a consolidated PAT of Rs2.7bn (EPS of Rs1.8) up by 59% YoY and by 6% QoQ. The company also recorded the highest-ever HY operating profit of Rs5.1bn.
  • Earnings are up by 59% YoY primarily due to increase in gross margins from 22.5% to 25.4% in 2Q2025. Other income has increased 184% YoY to Rs487mn on the back of exchange gain resulting from the depreciation of PKR by 2%, in our view.
  • We maintain a BUY stance on Systems Limited (SYS). The company is currently trading at 2025F and 2026F PE of 18.4x and 13.7x, respectively.
Pakistan Economy: Pakistan Inflation to clock in at 3.75-4.25% in Aug 2025 – By Topline Research

Aug 18 2025


Topline Securities


  • Pakistan’s Consumer Price Index (CPI) for Aug 2025 is expected to clock in at 3.75-4.25% YoY vs. 9.63% in Aug 2024 and 4.07% in Jul 2025. The MoM inflation in Jul 2025 is expected to clock in at +0.3%.
  • The MoM is positive due to a rise of 2.34% in transport segment led by an increase in diesel prices by 4.7% MoM.
  • The food segment is expected to remain flattish, we expect -0.05% as rise of 26.2%, 15.24%, and 9.5% rise in Tomatoes, Onions and Eggs respectively is expected to be offset by decline in Fresh Fruits, Sugar, and Chicken by 9.9%, 4.7%, and 4.4%, respectively.
Pakistan Market: MSCI Aug 2025 Index Review – By Topline Research

Aug 8 2025


Topline Securities


  • MSCI has announced its Aug 2025 Index review, wherein 1 new stock of Pakistan is added to frontier market index namely Faysal Bank (FABL).
  • This takes total number of constituents in MSCI Frontier Index to 27 from earlier 26. These changes will be implemented as of the close of August 26, 2025.
  • Based on details updated on the MSCI website, in Aug 2025 review, the minimum threshold of free float and total market cap for the selection of frontier market stocks was US$90mn and US$181mn, respectively. This threshold is significantly higher by 15-17% than May 2025 review and largely in line with performance of the frontier markets.
MCB Bank Limited (MCB): Result Review – By Topline Research

Aug 6 2025


Topline Securities


  • MCB Bank (MCB) announced its 2Q2025 results today, reporting consolidated earnings of Rs14.6bn (EPS: Rs12.3), down 13% YoY and flat QoQ. This takes 1H2025 earnings to Rs29.2bn (EPS: Rs24.7), down 16% YoY.
  • The 2Q2025 results came higher than industry expectations due to higher-than-expected Net Interest Income (NII).
  • Net Interest Income (NII) for 2Q2025 settled at Rs39.9bn down 4% YoY while up 2% QoQ due to higher asset yields.
Pakistan Economy: Federal Government Fiscal Operations – By Topline Research

Aug 5 2025


Topline Securities


  • Pakistan recorded a 9-year low fiscal deficit of 5.38% in FY25, thanks to 36% YoY growth in both tax and non-tax revenues combined vs. 18% growth in total expenditures. The deficit of 5.38% is better than government’s revised forecast of 5.6% of GDP (earlier budgeted 5.9%) for FY25. Similarly, IMF also projected deficit at 5.6% of GDP.
  • Overall revenues have grown 36% YoY amidst 66% increase in non-tax revenues led by robust dividend of Rs2.62trn (vs. Rs0.97trn in FY24) from SBP amidst higher interest rates and expanded balance sheet.
  • While tax revenues have grown 26% YoY led by 26% growth in FBR revenues. In last 5 years FBR revenues (including PDL) have increased 3.02x from Rs4.3trn in FY20 to Rs12.9trn in FY25. While size of GDP during same period has increased 2.75x from Rs41trn to Rs114.6trn.