Morning News: IMF deadline: NTC asks provinces to lay agriculture tax bills by year-end – By Vector Research

Dec 5 2024


Vector Securities


  • The National Tax Council (NTC) has decided to table amendments to the Agriculture Income Tax (AIT) legislation in the provincial assemblies after failing to reach an agreement on harmonising goods and services tax (GST) rates as well as unifying property taxes under a single regime. The NTC aims to present a draft of the negative list of GST on services by January 1, 2025.
  • The International Monetary Fund's (IMF) condition of a market-based exchange rate for the past over two years has kept the US dollar overvalued by at least one-fourth, or Rs67, which also contributed to higher inflation and interest payments, a tax advisory firm claimed. In its Economy Alert note, Tola Associates, a tax advisory and consultancy firm, argued that in the absence of the IMF condition, the average rupee-dollar parity would have been Rs211.5 by the end of October. If it is proven correct, it means that the average rupee value is currently weaker by around Rs67, or 24%.
  • The government borrowed Rs2 trillion through auctions of sukuk (Islamic bonds) at the stock exchange and raised another Rs1.4tr by selling Pakistan Investment Bonds (PIBs) during 2024. The government has been trying to restructure its debt profile by opting for long-term borrowing over short-term domestic bonds.

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Commercial Bank: 1QCY25 Universe earnings to grow 13%QoQ - By Taurus Research

Apr 18 2025


Taurus Securities


  • We expect 1QCY25 TSL Banking Universe earnings to grow 13% QoQ on account of lower cost of funds and provisions. Wherein, UBL and BAFL have already announced their results posting 39% QoQ growth and 52%QoQ growth in profitability, respectively. On an annualized basis, we anticipate earnings to go up 5%.
  • During the period, the State Bank of Pakistan cut its policy rate by 100bps to 12%. Resultantly, the industry spread on outstanding loans and deposits is estimated to have averaged ~6.50% as compared an average of 5.39% in the previous quarter—on the back of the re-pricing lag between the assets and the liability side.
  • Nevertheless, we anticipate a cumulative re-pricing of ~900bps in asset yields to have taken place by the period when compared to the corresponding period last year. Hence, affecting the interest incomes, specially on the investment books.
Pakistan Fertilizer: 1QCY25E Result Preview: Muted offtakes to weigh on profitability - By AKD Research

Apr 18 2025


AKD Securities


  • AKD Fertilizer Universe’s profitability is projected to decline by 16%YoY in 1QCY25E, primarily due to lower offtakes.
  • Company-wise, FFC profitability is expected to rise by 46%YoY post-merger, while EFERT and FATIMA earnings are projected to decline by 65%/6%, respectively.
  • FFC payout is expected to increase by 63%YoY, while EFERT dividend is projected to fall by 75%YoY
Economy: Pakistan’s Trade Deficit Narrowed in March’25 - By Sherman Research

Apr 18 2025


Sherman Securities


  • A detailed breakdown of trade numbers released by the Pakistan Bureau of Statistics (PBS) shows that, on a monthly basis, imports remained flat at US$4.8bn during Mar’25. This stability was primarily driven by lower imports in the petroleum and food sectors on a weighted average basis, while agriculture imports increased.
  • On cumulative basis, import bill was recorded at US$42.7bn (up 9%YoY) during 9MFY25 mainly due to higher imports of machinery, textile and agriculture, while petroleum and food imports declined.
  • Exports increased to US$2.6bn (up 6%MoM) during Mar’24. Likewise, during 9MFY25, exports clocked in at US$24.7bn (up 8%YoY), mainly due to growth in exports in the food and textile sectors.
Pakistan Economy: Power sector circular debt resolution plan in the offing - By Foundation Research

Apr 18 2025


Foundation Securities


  • Pakistan's power sector has become a key challenge in the country's macroeconomic balancing act. Stabilizing the economy hinges on resolving power sector issues, which took center stage in recent IMF negotiations for the $7 billion Extended Fund Facility. In a bid to settle the amount in a single go, the government has plans to inject Rs1.5 trillion to tackle the circular debt crisis, clearing overdue liabilities and paving the way for sector stability.
  • Commercial banks will provide nearly Rs1.275 trillion of the bailout package, despite already having significant exposure to the power sector's circular debt. The deal, negotiated between the government and banks, offers below-KIBOR interest rates, potentially saving the government 3-5% on debt servicing costs. Contrary to news flow of banks being pressured into the deal, top banking executives and government officials have assured that the agreement was reached mutually.
  • According to news flow, a term sheet was signed between the government and banks at a large commercial bank in Karachi, with disbursements slated to begin next month. This financial intervention aims to curb the energy crisis and prevent further debt accumulation.
Economy: Mar-2025: Current Account posts historic surplus - By JS Research

Apr 18 2025


JS Global Capital


  • Pakistan's current account balance posted a massive surplus of US$1.19bn in Mar-2025, bringing the 9MFY25 current account surplus to US$1.86bn. The improvement was driven by record-high remittances, with Mar-2025 inflows reaching US$4.1bn, a 37% YoY surge.
  • Balance of Payments (BoP) remained negative this month as well due to loan repayments. Monthly BoP figure has turned negative for the fifth time FY25TD. However, BoP balance remains in positive territory for 9MFY25.
  • We highlight that some planned foreign inflows have not materialized, likely to be unlocked post IMF disbursement. SBP governor recently revised the Jun-2025 reserves forecast to US$14bn, up from previous estimate of US$13bn. To note, SBP’s reserves have declined by ~US$1.1bn since Dec-24 while Import cover is down from 2.8months to 2.1months.
Pakistan Textile: Mar’25 Textile exports up 10%YoY - By Taurus Research

Apr 18 2025


Taurus Securities


  • Textile exports arrived at USD 1.43Bn in Mar’25 as compared to USD 1.3Bn in the SPLY, reflecting a growth of ~10%YoY. Whereas, on a monthly basis it only increased by 1%MoM. The increase was mainly due to the higher exports of cotton yarn, knitwear, bed wear, ready-made garments, art & silk, made-up articles and other textiles up 30%YoY, 15%YoY, 19%YoY, 12%YoY, 9%YoY, 10%YoY and 11%YoY, respectively. Moreover, 9MFY25 textile exports increased 9%YoY to USD 13.6Bn as compared to USD 12Bn in the SPLY
  • In Mar’25, Basic textile exports totaled USD 205Mn, down ~2% YoY, mainly attributed to decline in exports of cotton cloth and yarn. Whereas, value added exports showed a significant increase of 13%YoY along with a 9%YoY increase in other textiles.
Morning News: March C/A posts $1.2bn surplus - By Vector Research

Apr 18 2025


Vector Securities


  • Pakistan’s current account posted a record all-time high monthly surplus of $1.2 billion in March 2025, fueled by historic inflows of home remittances, according to data released by the State Bank of Pakistan (SBP) on Thursday.
  • Foreign Direct Investment (FDI) into Pakistan rose by 14 percent during the first nine months of this fiscal year (FY25). According to the State Bank of Pakistan (SBP), the country fetched FDI amounting to $1.644 billion in July-March of FY25 compared to $1.442 billion in the same period of last fiscal year (FY24), showing an increase of $202 million. During the period under review, FDI inflows were $2.472 billion as against $828 million outflow.
  • Pakistan’s central bank’s foreign exchange reserves dropped by $127 million to $10.57 billion during the week ended April 11 due to external debt repayments, the State Bank of Pakistan (SBP) said on Thursday. The total liquid foreign reserves held by the country also decreased by $91 million to $15.66 billion. However, the reserves of commercial banks increased by $36 million to $5.09 billion.
Technical Outlook: KSE-100; Consolidation to continue - By JS Research

Apr 18 2025


JS Global Capital


  • The KSE-100 index witnessed positive movement to close at 116,901, up 881 points DoD. Volumes stood low at 408mn shares compared to 482mn shares traded in the previous session. The index is currently trading above the 30-DMA and the 50-DMA that will restrict downside at 115,828 and 114,617 levels, respectively. However, any upside will face resistance in the range of 117,210-118,050 levels where a break above targeting 118,718 level. The RSI and the Stochastic Oscillator have moved up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below the 30-DMA. The support and resistance levels are at 116,074 and 117,472 levels, respectively.
Morning News: March C/A posts $1.2bn surplus - By WE Research

Apr 18 2025



  • Pakistan recorded a historic monthly current account surplus of $1.2 billion in March 2025, driven by unprecedented remittance inflows of $4.1 billion, according to the State Bank of Pakistan. This marked a 229% increase from March 2024 and a significant reversal from February 2025’s deficit. Cumulatively, the current account showed a $1.859 billion surplus in July–March FY25, compared to a $1.652 billion deficit in the same period last year. Analysts hailed this as a vital boost for the economy, easing pressure on the rupee, supporting foreign reserves, and reducing reliance on external borrowing. While the trade deficit widened to $18.73 billion due to increased imports, moderate export growth and a $2.32 billion services deficit highlighted ongoing challenges. Despite persistent financial pressures and IMF support under a $7 billion program, Pakistan’s external sector is showing signs of recovery backed by policy reforms and improved macroeconomic stability.
  • Foreign Direct Investment (FDI) in Pakistan rose by 14% in the first nine months of FY25, reaching $1.644 billion compared to $1.442 billion during the same period in FY24, primarily due to strong inflows from China and Hong Kong and increased investment in the financial services and power sectors. China contributed the largest share at 41%, with its FDI doubling to $684.5 million. Despite this overall growth, March 2025 saw a sharp month-on-month decline of 91% in FDI. Economists attribute the positive trend to improved macroeconomic stability and IMF-backed reforms, but warn that sustained growth depends on consistent policies and political stability to maintain investor confidence.
  • Pakistan’s textile exports grew by 9.38% during July–March FY25, reaching $13.613 billion compared to $12.445 billion in the same period last year, according to the Pakistan Bureau of Statistics (PBS). Overall exports rose by 7.82% to $24.719 billion, with March 2025 exports totaling $2.646 billion—up 6.27% from February and 3.08% year-on-year. Textile exports in March specifically increased by 9.97% from February. However, rice exports declined by 5.91%, totaling $2.757 billion compared to $2.930 billion last year. Key export commodities in March included knitwear, readymade garments, bedwear, various rice types, cotton cloth, towels, and petroleum products, highlighting continued strength in the textile sector despite weaknesses in agricultural exports.
Lotte Chemical Pakistan Limited (LOTCHEM): 1QCY25 EPS clocked in at PKR0.44 – Below expectation - By Insight Research

Apr 17 2025


Insight Securities


  • LOTCHEM has announced its 1QCY25 result, wherein company has posted PAT of PKR0.7bn (EPS: PKR0.44) vs. PAT of PKR0.9bn (EPS: PKR0.59) in SPLY. The result is below our expectation due to lower than estimated revenue.
  • In 1QCY25, revenue decreased by 33% YoY, due to lower volumetric sales. While on QoQ basis, same is up by 6% possibly due to higher PTA prices and volumetric sales.
  • Gross margins of the company clocked in at 6.2%, up by 100bps/540bps YoY/QoQ, due to improved core delta.
Morning News: March C/A posts $1.2bn surplus - By Vector Research

Apr 18 2025


Vector Securities


  • Pakistan’s current account posted a record all-time high monthly surplus of $1.2 billion in March 2025, fueled by historic inflows of home remittances, according to data released by the State Bank of Pakistan (SBP) on Thursday.
  • Foreign Direct Investment (FDI) into Pakistan rose by 14 percent during the first nine months of this fiscal year (FY25). According to the State Bank of Pakistan (SBP), the country fetched FDI amounting to $1.644 billion in July-March of FY25 compared to $1.442 billion in the same period of last fiscal year (FY24), showing an increase of $202 million. During the period under review, FDI inflows were $2.472 billion as against $828 million outflow.
  • Pakistan’s central bank’s foreign exchange reserves dropped by $127 million to $10.57 billion during the week ended April 11 due to external debt repayments, the State Bank of Pakistan (SBP) said on Thursday. The total liquid foreign reserves held by the country also decreased by $91 million to $15.66 billion. However, the reserves of commercial banks increased by $36 million to $5.09 billion.
Morning News: Roshan Digital Account inflows hit $235m in March, total crosses $10bn - By Vector Research

Apr 17 2025


Vector Securities


  • Total inflows into Roshan Digital Accounts (RDA) reached $235 million in March 2025, pushing cumulative inflows past the $10 billion mark, according to the latest data from the State Bank of Pakistan (SBP).
  • Terming Pakistan’s tax system highly ‘unfair and absurd’, the World Bank (WB) has called for bringing property into the tax net while ensuring it is accurately recorded and taxed. According to the WB, the increased burden on the salaried class could only be reduced by expanding the tax base and incorporating all incomes into the tax net.
  • Prime Minister Shehbaz Sharif Wednesday credited Beijing with Islamabad’s IMF programme saying it wouldn’t have been possible without the neighbouring country’s support. The premier’s remarks — made during a ceremony held in connection with the PM’s initiative for capacity building of 1,000 agriculture graduates in China — came in the context of last month’s deal between Islamabad and the IMF on the first review of the ongoing 37-month bailout programme of $7 billion.
Morning News: IMF concludes Pak visit, set to propose transparency reforms - By Vector Research

Apr 15 2025


Vector Securities


  • The International Monetary Fund (IMF) has identified key shortcomings in Pakistan's governance, including the politicisation of the civil service, weak organisational accountability, and excessive focus on short-term goals. These issues, the IMF noted, contribute to broader governance weaknesses and increase vulnerability to corruption. The report which is expected to be made public by August this year will give recommendations for ensuring greater transparency and improving the public sector delivery by minimising the chances of corruption and through merit-based decisions.
  • With the halt of USAID operations by President Donald Trump, Pakistan’s total portfolio of $445 million has been affected over five years, surfacing a gap of $40 million for the current fiscal year for on-budget development projects. “However, in a positive development on the external front, Fitch Ratings might upgrade Pakistan’s rating within a few days”, top official sources confirmed while talking to The News on Monday. The Fitch might upgrade from a notch of CCC+ to BBB keeping in view the reduced risk of default.
  • Members of the delegation of US congressmen visiting Pakistan have described their trip to the South Asian country as "extremely productive" and “significant for the future", which is good news for the mineral-rich country. The delegation also attended the Pakistan Mineral Investment Forum 25 (PMIF25) last week in Islamabad.
Morning News: Pak-IMF technical-level talks next week - By Vector Research

Apr 14 2025


Vector Securities


  • The technical-level talks between Pakistan and the International Monetary Fund (IMF) on the federal budget for the fiscal year 2025-26 are expected to begin next week, according to sources.
  • The government is considering cutting down the corporate tax rate and providing tax reliefs on other heads in the upcoming budget for the financial year 2025-26. It wants to do this by using the fiscal space made available in the wake of a reduction in international oil prices and through the significant drop of 10-percentage points in the key interest rate by the central bank since June-2024 to 12% at present.
  • Federal Finance Minister Muhammad Aurangzeb said on Thursday said that the upcoming federal budget will bring relief for salaried individuals and further reductions in electricity costs. The finance minister announced that a detailed relief plan for the salaried class has been finalised and will be shared with the International Monetary Fund (IMF).
Morning News: IMF team due next week to discuss taxation proposals for next budget - By Vector Research

Apr 11 2025


Vector Securities


  • A technical team of the IMF will be visiting Pakistan from next week for holding parleys with the FBR high-ups to discuss taxation proposals for the upcoming budget 2025-26.
  • Prime Minister Shehbaz Sharif on Thursday blocked a proposal to waive the 18% sales tax on local supplies of commodities, raw materials, and machinery to registered exporters due to a possible reaction from the International Monetary Fund (IMF). 
  • The United Nations Development Programme (UNDP), in coordination with the Ministry of Climate Change and Envi-ronmental Coordination (MoCC&EC) and the Public-Private Partnership Authority (P3A), has identified five preliminary bankable projects valued at over USD 1 billion.
Morning News: Trillions of dollars in minerals can free Pakistan from IMF dependence: PM Shehbaz - By Vector Research

Apr 9 2025


Vector Securities


  • Prime Minister Shehbaz Sharif has invited both local and foreign investors to capitalise on Pakistan's vast mineral resources, which are estimated to be worth trillions of dollars. Speaking at the two-day Pakistan Minerals Investment Forum 2025 (PMIF25) in Islamabad on Tuesday, the prime minister expressed optimism that utilising these resources would enable Pakistan to reduce its dependency on global financial institutions like the International Monetary Fund (IMF).
  • Canadian mining giant Barrick Gold is set to raise $3 billion in international financing for the multi-billion-dollar Reko Diq Copper & Gold Project in Balochistan. Barrick’s President and CEO Mark Bristow told Dawn on Tuesday that a financing pact with the World Bank and its commercial arm International Finance Corporation (IFC) was expected to be signed by mid-year and final financing packages by third quarter this year for $650 million. “We expect to drawdown about $500m by 4th quarter,” he said.
  • Prime Minister Shehbaz Sharif on Tuesday welcomed a $2 billion investment from global shipping giant AP Moller – Maersk, hailing it as a significant boost to Pakistan’s maritime sector. During a meeting with Robert Maersk, chairman of the board of directors at AP Moller – Maersk, he directed authorities to fast-track the conversion of memoranda of understanding (MoUs) signed with the company last year into formal agreements.
Morning News: Pakistan bondssink over 13 cents on Trump tariff pressure - By Vector Research

Apr 8 2025


Vector Securities


  • Pakistan bonds fell more than 13 cents in the frontier market on Monday, as US President Donald Trump showed no signs of backing away from sweeping tariffs. It was the single biggest decline for Pakistan bonds across many maturities since Russia’s fullscale invasion of Ukraine shook markets in early 2022.
  • Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik has announced that the Pakistan Mineral Investment Forum 25 (PMIF25) would commence today (Tuesday) for two days, April 8–9, to highlight the country’s vast mineral potential. At the forum, the government would showcase Pakistan’s mineral-rich landscape, spanning approximately 600,000 square kilometers.
  • As the government considers its options, the private sector views the Trump administration’s reciprocal tariffs as a strategic manoeuvre to compel Islamabad to engage in discussions for better access to the Pakistani market. The tariffs have also impacted Pakistan’s three main competitors in the US market—India, Vietnam, and Bangladesh. However, New Delhi and Hanoi have already prepared in advance, while Pakistan’s commerce ministry remains in the early stages of discussions.
Morning News: Goods exports rise by 7.7% to $24.7bn in nine months - By Vector Research

Apr 4 2025


Vector Securities


  • Pakistan’s exports climbed 7.7 percent to $24.7 billion in the first nine months of the fiscal year 2024-25, bolstered by gains in textiles, rice and other key agricultural products. The policymakers expect total exports to surpass $33 billion by June, aiming to sustain the momentum despite economic headwinds.
  • Pakistan's annual inflation rate slowed to just 0.7% in March, the lowest level in over 57 years, primarily due to a reduction in prices of perishable food items and some relief in electricity rates. The Pakistan Bureau of Statistics (PBS) on Thursday reported that the price spiral significantly eased in March compared to a year ago. It was the lowest inflation rate since September 1968, when the country recorded an annual inflation rate below 0.7%.
  • Pakistan’s central bank’s foreign exchange reserves increased by $70 million to $10.68 billion during the week ended March 28, the State Bank of Pakistan said on Thursday. The total liquid foreign reserves held by the country also rose by $29 million to $15.58 billion. However, the reserves of commercial banks fell by $41 million to $4.903 billion.
Morning News: IMF’s RSF; Pakistan to get $1.3bn in tranches - By Vector Research

Apr 3 2025


Vector Securities


  • The International Monetary Fund (IMF) Director of Communications Julie Kozack said Pakistan will receive $1.3 billion under Resilience and Sustainable Facility (RSF) in tranches over 28 months. Speaking at a press conference, Kozack said that for the RSF over the length of the arrangement, subject to approval by the IMF’s Executive Board, the staff-level agreement references an amount of $1.3 billion and that access will be over the life of the RSF, delivered in tranches.
  • Azerbaijan has offered over $1 billion loan in cash deposit in response to Pakistan's request for funding the $1.2 billion Sukkur-Hyderabad motorway amid a disagreement among various government departments over the mode of lending.
  • Remittances are expected to cross a record high of $3.5 billion in March, rising 15 per cent month-on-month, driven largely by inflows during Ramazan, according to financial experts and currency dealer.
Morning News: Key infrastructure projects; Azerbaijan keen to invest $2bn, Senate panel told - By Vector Research

Mar 25 2025


Vector Securities


  • The Senate Standing Committee on Planning, Development and Special Initiatives was informed that Azerbaijan has expressed its intention to invest $2 billion in Pakistan, potentially impacting key infrastructure projects. 
  • In a step to fulfill another condition set by the International Monetary Fund (IMF), the government has decided to operationalise the newly established Tax Policy Office by appointing a Director General and five Directors. The Ministry of Finance has invited applications from eligible candidates for these positions.
  • The rupee weakened slightly on Monday as the uncertainty over the finalisation of the staff-level agreement (SLA) with the International Monetary Fund for the second $1 billion tranche of the $7 billion bailout weighed on the local currency.