Cement : Lahore High Court upholds 6% Royalty on Punjab Manufacturers - By Taurus Research

Jun 17 2025


Taurus Securities


  • In a recent development, the Lahore High Court has upheld its decision, to maintain the higher royalty charge i.e. 6% of the ex-factory cement price (PKR 1,250-1,350 per ton) – previously PKR 250/ton in FY24 for Punjab based manufacturers - ruling against the cement companies. We believe the affected Companies are likely to file on appeal against the judgment in the Supreme Court.
  • Hence, the decision cannot be considered final as yet. Nevertheless, cement companies operating out of Punjab are already providing for the higher royalty charge. However, encashment of bank guarantees for securing on earlier stay order may have slight impact on cash flows for these companies.
  • In contrast, KPK based cement producers are already enjoying high margins on selling cement bags at the discounted prices in Punjab. To recall, the KPK government announced provisional budget where they increased royalty charge from PKR 250/ton to PKR 350/ton. Resultantly, the disparity remains huge in the royalty charges of KPK and Punjab cement manufacturers i.e. PKR 950-1,050 per ton difference.

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Pakistan Power: Base tariff cut and circular debt overhaul to reshape energy sector outlook - By AKD Research

Jul 7 2025


AKD Securities


  • The national base tariff is determined at PkR34.0/kwh for FY26, down by 4%YoY compared to PkR35.5/kwh in FY25.
  • GoP has accelerated its power sector reform agenda, with the PkR1.25tn commercial bank borrowing facility to reduce the mounting circular
  • Continued resolution of the circular debt would be beneficial for companies under our coverage space, namely: OGDC (Dec’25 TP: PkR371/sh), PPL (Dec’25 TP: PkR281/sh) and PSO (Dec’25 TP: PkR729/sh).
Autos: Marking FY25 as a year of recovery - By JS Research

Jul 7 2025


JS Global Capital


  • We preview automobile sales volumes for Jun-2025, expecting the three major players including Indus Motors Company Ltd (INDU), Honda Atlas Cars Ltd (HCAR), and Pak Suzuki Motor Company Ltd to post combined growth of 33%/9% YoY/MoM, reaching ~14.5k units – highest since Dec-2022.
  • All three companies are projected to post strong YoY volume growth, with HCAR leading peers with 65% YoY growth in Jun2025, followed by PSMC (+31% YoY), and INDU (+25% YoY), helped by pre-budget buying ahead of anticipated negative budgetary measures. Meanwhile, Sazgar Engineering Works Ltd (SAZEW) volumes also rose 55% YoY in Jun-2025.
  • For FY25 cumulatively, the auto sector witnessed a strong recovery, with volumes expected to grow by 37% to ~121k units, supported by improving macroeconomic stability and a rebound in consumer confidence amid stable car prices.
Technical Outlook: KSE-100 setting a record - By JS Research

Jul 7 2025


JS Global Capital


  • Bullish momentum continued for the KSE-100 index, which gained 1,262 points to close at 131,949. Trading volumes stood at 733mn shares, compared to 900mn shares previously. The index is likely to retest Friday’s high of 132,130; a break above this level could target 133,412, with potential to rise further toward 135,232. On the downside, support is seen in the 130,710-131,600 range. The RSI and MACD continue to rise, reinforcing the positive outlook. We advise investors to ‘Buy on dips,’ with risk defined below 130,716. Immediate support and resistance are placed at 131,067 and 132,480, respectively.
Morning News: Pakistan, US reach accord on trade and tariffs - By HMFS Research

Jul 7 2025


HMFS Research


  • With less than a week to go before the July 9 deadline, Pakistan and the United States have concluded a critical round of trade negotiations. While both sides have reached an understanding, a formal announcement is expected only after the US concludes similar ongoing negotiations with other trade partners. The tariff relief, temporarily paused earlier this year, was at risk of expiring if no progress had been made by the July 9 deadline. The agreement, when signed, could lead to increased Pakistani imports of US goods — notably crude oil — and potential American investment in Pakistan’s mining, energy, and infrastructure sectors.
  • The U.S. dollar hovered near its lowest since 2021 against the euro and the weakest since 2015 versus the Swiss franc on Monday, with traders alert for any trade-related headlines in the countdown to President Donald Trump’s tariff deadline. The dollar index , which measures the currency against those three rivals and three more major counterparts, was flat at 96.967, hovering above Tuesday’s nearly 3-1/2-year trough of 96.373.
  • US President Donald Trump said on Friday that he had signed 12 trade letters to be sent out next week ahead of an impending deadline for his tariffs to take effect. “I signed some letters and they’ll go out on Monday, probably 12,” Trump told reporters aboard Air Force One, adding that the countries to which the letters would be sent will be announced on the same day. His comments come days before steeper duties — which the president said on Thursday would range between 10 and 70 per cent — are set to take effect on dozens of economies, from Taiwan to the European Union.
Morning News: Pakistan, US reach accord on trade and tariffs - By Vector Research

Jul 7 2025


Vector Securities


  • With less than a week to go before the July 9 deadline, Pakistan and the United States have concluded a critical round of trade negotiations, reaching an understanding on a deal that could shape the future of the country’s key export sectors. The delegation arrived in Washington on Monday with the aim of finalising a long-term reciprocal tariff agreement that would prevent the re-imposition of a 29 per cent tariff on Pakistani exports — primarily textiles and agricultural products. The tariff relief, temporarily paused earlier this year, was at risk of expiring if no progress had been made by the July 9 deadline.
  • Pakistan and Azerbaijan in a major development Friday signed a partnership agreement. The agreement for investment of a total of $2 billion by Azerbaijan in the economic sector of Pakistan.
  • Foreign exchange companies contributed around $450 million to remittance inflows during June, taking their total contribution to approximately $5 billion in FY25, according to the Exchange Companies Association of Pakistan (ECAP). “We sold about $450m to banks in June, highlighting our growing role in supporting the country’s exchange rate stability,” said Zafar Paracha, Secretary General of ECAP.
Morning News: Azerbaijan to invest $2bn in economic sector WE Research

Jul 7 2025



  • Pakistan and Azerbaijan have signed a significant $2 billion investment agreement, marking a new milestone in bilateral economic relations. The deal, signed in the presence of Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, and Azerbaijani Economy Minister Mikayil Jabbarov, reflects growing investor confidence in Pakistan. It follows a cordial meeting between Prime Minister Sharif and Azerbaijani President Ilham Aliyev in Khankandi, with a more detailed agreement to be finalized during the Azerbaijani President’s upcoming visit to Pakistan. Both countries committed to further enhancing cooperation across various sectors, including trade, investment, and climate issues, as emphasized by Prime Minister Sharif during his remarks in Shusha.
  • With less than a week before the July 9 deadline, Pakistan and the United States have reached a preliminary understanding on a trade agreement aimed at securing Pakistan’s key export sectors, particularly textiles and agriculture, from the re-imposition of a 29% tariff. Led by Commerce Secretary Jawad Paal, the Pakistani delegation concluded four days of negotiations in Washington, with a formal announcement expected after the US finalizes talks with other trade partners. The proposed deal includes reciprocal tariff arrangements, increased Pakistani imports of US goods such as crude oil, and potential American investment in Pakistan’s mining, energy, and infrastructure sectors—including projects like Reko Diq. Officials remain optimistic that the agreement will preserve Pakistan’s access to the US market and revitalize economic ties strained since the Trump-era tariffs.
  • Oil prices dropped over 1% after OPEC+ surprised markets by announcing a larger-than-expected production increase of 548,000 barrels per day (bpd) for August, raising fears of oversupply. Brent crude fell to $67.50 per barrel, while U.S. West Texas Intermediate dropped to $65.68. The hike, up from prior monthly increases of 411,000bpd, reflects a more aggressive push for market share, with Saudi Arabia driving much of the actual output gains. OPEC+ cited strong global demand and low inventories as justification. Goldman Sachs expects a final 550,000bpd increase to be announced for September at the group’s August 3 meeting. Meanwhile, Saudi Arabia raised prices for its flagship Arab Light crude in a show of confidence in demand. In a related development, U.S. President Trump indicated higher tariffs will be announced by July 9, with implementation set for August 1.
Market Wrap: Banking on Bulls: KSE-100 Hits a New Milestone - By HMFS Research

Jul 4 2025


HMFS Research


  • The Pakistan Stock Exchange (PSX) sustained its upward trajectory in today’s session, with the benchmark KSE-100 Index surging to a fresh intra-day high of 132,130 before closing at 131,949, up by a robust 1,262 points (+0.97%). The rally was supported by sustained investor interest—particularly in the banking sector—as participants continued to rotate into fundamentally sound, undervalued plays amid a supportive macroeconomic backdrop. Trading activity remained strong, with the All-Share Index posting a healthy turnover of 731mn shares, while KSE-100 volumes came in at 199mn shares, indicating broad-based participation. Top volume leaders included, WTL (58mn), BML (36mn), and TREET (30mn). The banking sector emerged as the primary driver of index gains, supported by attractive dividend yields, and compelling P/B valuations. The recent softening in Pakistan’s sovereign credit default swap (CDS) spreads has further improved investor sentiment by lowering perceived external risk, catalyzing flows into equities. While the momentum remains firmly intact, the market’s proximity to psychological resistance levels suggests room for near-term consolidation, especially as investors may opt to lock in recent gains. However, the medium-term narrative remains constructive, underpinned by prospects of continued IMF engagement, fiscal reforms, and easing external account pressures. We continue to advise investors to remain selective and focus on sectors with resilient fundamentals and earnings visibility. In the current phase of the cycle, valuation discipline, liquidity considerations, and macro-driven event positioning will remain critical in navigating market dynamics.
Market Wrap: Highlights of the day - JS Research

Jul 4 2025


JS Global Capital


  • The KSE-100 Index closed the session on a strong note, gaining 1,262 points to settle at 131,949. Broad-based buying was seen across key sectors, with Autos, banks, and Power leading the charge. Investor sentiment remained upbeat, supported by improved macros and anticipation of further monetary easing. Looking forward, we have a favorable view on the market in the near term, backed by favorable liquidity conditions, positive policy cues, and foreign interest returning to key sectors. However, intermittent consolidation cannot be ruled out as the index approaches resistance levels.
Fertilizers: Sales to recover in June-2025; albeit inventory level remains high - By JS Research

Jul 4 2025


JS Global Capital


  • As per provisional figures, Urea off-take during Jun-2025 is expected to clock in at 580k tons, arriving at a growth of 20% YoY/ 39% MoM. Cumulatively, Urea off-take is likely to post a negative growth of 23% YoY during 1HCY25. On the other hand, DAP off-take is likely to fall 15% YoY during the month.
  • Company-wise, Fauji Fertilizer Company (FFC) is expected to post Urea off-take of 269k tons in Jun-2025, up 4% YoY. This includes 51k tons of granular Urea. Engro Fertilizers (EFERT) is likely to post growth 32% YoY, arriving at 205k tons. In terms of market share, EFERT Urea share improved by 3ppts YoY to 35%, while FFC’s share dipped 8ppts YoY during the month.
  • Urea inventory is expected to remain elevated at around 1.3mn tons by the end of 1HCY25. Assuming capacity utilization remains stable at current levels, allowance of export can be a key trigger in our view, helping to mitigate inventory buildup despite the anticipated increase in local sales during 2HCY25.
Technical Outlook: KSE-100; Upside to continue - By JS Research

Jul 4 2025


JS Global Capital


  • The KSE-100 Index witnessed a volatile session to close at 130,687, up 343 points DoD. Volumes stood at 900mn shares compared to 1,026mn shares traded in the last session. The index is expected to revisit yesterday’s high of 131,325 with a break above targeting 132,134, which can extend to 133,412. However, any downside will find support in the range of 129,050-129,870 levels. The RSI and the MACD are heading up, supporting a positive outlook. We advise investors to 'Buy on dips', keeping stoploss below 128,616. The support and resistance levels are placed at 129,867 and 131,415, respectively.
Cement: June’25 dispatches down 26%MoM - By Taurus Research

Jul 3 2025


Taurus Securities


  • Total Cement dispatches in June’25 down 26%MoM on the back of lower construction demand and rise in geo-political conflict, declining exports i.e. domestic and export sales dropped by 29% MoM and 13%MoM, respectively. On a YoY basis, total domestic sales were down 16% in June’25 as higher taxes along with higher FED and increase in the cost of construction materials has reduced construction demand compared to the SPLY. However, exports during June’25 surged massively by 82%YoY on account of increase in clinker and cement demand from the regional/exporting countries during the period.
  • North-based domestic sales decreased 26%MoM in June’25 due to decline in the construction activities amid bad weather conditions and lower construction demand. Wherein, export sales were down 14%MoM amid escalation of war in the MiddleEast. South-based domestic sales dropped significantly by 44% MoM in June’25. On the export front, South-based exports were down 13%MoM, respectively.
  • On a YoY basis, North-based domestic sales down 14%YoY in June’25 due to lower construction demand i.e. impact of higher taxes and surge in construction material cost. However, Northbased exports were up significantly by 91%YoY, reflecting higher demand from the export regions. On the South front, domestic sales during June’25 decreased by 23%YoY. However, export sales surged by 79%YoY to 0.65Mn tons, respectively.
Economy: Jun’25 Volumes surge 2%MoM, up 8%YoY - By Taurus Research

Jul 2 2025


Taurus Securities


  • Petroleum products off-take for Jun’25 stood at approximately 1.56Mn tons, reflecting a monthly growth of 2%. Similarly, on a yearly basis, sales were up 8%YoY. The increase in volumes on a MoM basis was primarily driven by lower POL prices along with controlled smuggling activities.
  • Specifically, volumes for MS increased 5%MoM and 5%YoY. HSD volumes grew 9%YoY growth but declined 8%MoM. However, FO sales increased 62%MoM but increased 22%YoY, primarily due to low RLNG consumption and excess of LNG supply and heightened electricity demand.
  • Moreover, FY25 saw a surge in POL sales which were up 7%YoY primarily due to higher demand for MS, HSD, HOBC and KERO, up 6%, 10%, 1.7x and 19%YoY, respectively.
Attock Cement Pakistan Limited (ACPL): Strong interest from potential buyers… Dec’25 TP of PKR 352, warrants a ‘BUY’ - By Taurus Research

Jun 30 2025


Taurus Securities


  • We reiterate our ’BUY’ rating for Attock Cement Pakistan Limited (ACPL) with a Dec’25 target price of PKR 352/sh. offering an upside of 26% over the last day’s close. Our investment thesis primarily focuses on the Company’s strategic business advantages like: i) Presence in the South (2nd largest producer in the South) and the export market (15% share of Pakistan’s cement exports); and ii) Cost advantages (low dependence on the National Grid); coupled with an attractive valuation.
  • In addition, the location of the Company’s plant offers it immense strategic advantages like proximity to major projects like CPEC-Phase-II, Reko Diq and other mining & highway projects etc.; specially in the context of Balochistan, along with access to sea ports like Karachi, Port Qasim and Gwadar. Other triggers also include savings due to lower finance costs, going forward.
  • Moreover, recently the Company has also attracted strong interest from potential buyers in light of its sponsor’s intentions of a potential sale of the Company. The latter can be a strong catalyst for the current share price of the Company as it continues to trade at a massive discount on a replacement cost basis. Hence, a potential acquisition offer may be well above the current price.
TRG Pakistan Limited (TRG): 9MFY25 Corporate Briefing Takeaways - By Taurus Research

Jun 25 2025


Taurus Securities


  • The principal activity of TRG Pakistan is to manage a portfolio of investments in the business process outsourcing sector through its associate, The Resource Group International Limited (TRGIL). TRG Pakistan invests in the Technology, IT enabled services, and medicare insurance sectors. Its clients include companies from The Global 100. Through TRGIL, TRG Pakistan owns a 13% stake in both Afiniti and IBEX. Afiniti focuses on AI-based contact center optimization and IBEX specializes in outsourced customer interactions. Afiniti is controlled by Vista Lend Consortium. IBEX was listed on NASDAQ in 2020.
  • IBEX recorded 3QFY25 topline growth of 11%YoY at USD 540Mn, while 1QFY25 and 2QFY25 toplines recorded a growth of 4%YoY and 6%YoY, respectively. IBEX continues to outperform its peers with a 75% increase in its share price during the LTM, breaking the USD 30 level. Afiniti halved its senior debt by converting 50% of it into convertible preferred stock.
  • During 9MFY25, TRG recorded interest income of PKR 1.7Mn compared to PKR 1.8Mn during the SPLY. The Company recorded administrative and other expenses of PKR 456Mn compared to PKR 199Mn during the SPLY. This resulted in an operating loss of PKR 454Mn during 9MFY25 compared to PKR 196Mn during the SPLY.
Pakistan Economy: Jun’25 NCPI to arrive at 3.4%YoY/0.4%MoM - By Taurus Research

Jun 24 2025


Taurus Securities


  • We expect headline inflation for the month of Jun’25 to clock-in at 3.4%YoY owing to the base effect primarily, along with the sequential increase in food inflation and elevated core inflation. Hence, average inflation for FY25 is expected to touch-down at 4.7%YoY (down 19.3ppts over FY24).
  • During the month, we anticipate food prices to drive the general price level on the back of significant surge in prices of vegetables like Potatoes (up 20%MoM), Onions (up 8%MoM) & Tomatoes (up 30%MoM), mainly. This is expected to be offset by ~17% MoM fall in the price of Chicken (possibly due to lower consumption because of Eid) and stagnant or muted increase in the prices of other food items for the month.
  • However, Chicken prices are likely to increase in the coming months as the Government has proposed to impose a PKR 10 FED on one-day old chicks, as part of the Budget FY26.
Morning News: In another twist, Trump announces Iran-Israel ceasefire - By Taurus Research

Jun 24 2025


Taurus Securities


  • US President Donald Trump said late on Monday that a ceasefire has been agreed between Israel and Iran.
  • Pakistan has announced to extend its airspace restrictions on Indian aircraft for another month until July 23, 2025.
  • The potential closure of the Strait of Hormuz — one of the world’s most critical oil transit chokepoints —could deal a devastating blow to Pakistan’s already fragile economy, with soaring production, shipping, and insurance costs threatening industrial output, exports, and employment.
Janana De Malucho Textile Mills Limited (JDMT): 9MFY25 Corporate Briefing Takeaways - By Taurus Research

Jun 20 2025


Taurus Securities


  • Janana De Malucho Textile Mills Ltd was incorporated in Pakistan as a Public Company in 1960. The Company is mainly engaged in the business of manufacturing and sale of yarn.
  • In 9MFY25, sales clocked in at PKR 1.5Bn as compared to PKR 4.5Bn, down 67% over the SPLY mainly due to the suspension of production activities, weak demand, limited availability of cheaper imported yarn and inability to pass on price impact. The Company recorded gross loss of 29ppts arriving at -26% compared to 3% in the SPLY driven by the significant increase in its fuel & power costs from 18% to 20% during the period.
  • Finance costs arrived at PKR 218Mn compared to PKR 266Mn, down 18% over the SPLY driven by lower interest rate. Loss after tax arrived in at PKR 595Mn as compared to PKR 150Mn, up 3.0x over the SPLY primarily attributable to lower sale price of yarn and higher energy prices.
Economy: May’25 CAB posts a deficit of USD 103Mn - By Taurus Research

Jun 18 2025


Taurus Securities


  • Trade deficit continues to widen (up 16%MoM and 22% over the SPLY) as Pakistan’s CA posted a deficit of USD 103Mn during May’25. Goods exports fell 6% on a sequential basis. Whereas, goods imports increased 5%MoM. Services deficit recorded a contraction of 8% during the month to arrive at USD 2.7Bn in 11MFY25, up 1% over the corresponding period last year.
  • Remittances were the savior yet again, reflecting a growth of 16% over the previous month and 29% overall FYTD, clocking-in at USD 34.9Bn during 11MFY25. Consequently, 11MFY25 current account remains in a surplus of ~USD 1.8Bn. State Bank of Pakistan expects overall CAB for FY25 to post a sizeable surplus.
  • A dissection of the surge in imports shows that while petroleum imports posted a 7%MoM drop, machinery and transport group imports were up 17%MoM and 30%MoM, respectively. The latter is a strong indicator of uptick in economic activity. However, the situation poses a serious risk in case petroleum imports also surge on the back of soaring oil prices due to the evolving geopolitical situation. Resultantly, trade deficit is likely to widen further over the next few months, driving an even higher deficit.
Cement : Lahore High Court upholds 6% Royalty on Punjab Manufacturers - By Taurus Research

Jun 17 2025


Taurus Securities


  • In a recent development, the Lahore High Court has upheld its decision, to maintain the higher royalty charge i.e. 6% of the ex-factory cement price (PKR 1,250-1,350 per ton) – previously PKR 250/ton in FY24 for Punjab based manufacturers - ruling against the cement companies. We believe the affected Companies are likely to file on appeal against the judgment in the Supreme Court.
  • Hence, the decision cannot be considered final as yet. Nevertheless, cement companies operating out of Punjab are already providing for the higher royalty charge. However, encashment of bank guarantees for securing on earlier stay order may have slight impact on cash flows for these companies.
  • In contrast, KPK based cement producers are already enjoying high margins on selling cement bags at the discounted prices in Punjab. To recall, the KPK government announced provisional budget where they increased royalty charge from PKR 250/ton to PKR 350/ton. Resultantly, the disparity remains huge in the royalty charges of KPK and Punjab cement manufacturers i.e. PKR 950-1,050 per ton difference.
Economy: Jun’25 Monetary Policy Review - By Taurus Research

Jun 16 2025


Taurus Securities


  • State Bank of Pakistan’s Monetary Policy Committee (MPC) in its meeting today kept the benchmark policy rate unchanged at 11.00%, in line with expectations. The MPC highlighted the marginal decline in core inflation in May’25, with expectations of NCPI trending upwards going forward – albeit remaining within the SBP’s target range of 5%-7%. Wherein, recent budgetary measures are likely to have limited impact on inflation, although upside risks to this outlook remain very high.
  • Economic growth is picking-up gradually, likely to gain more traction next year with the impact of earlier rate cuts still unfolding. The MPC also noted potential risks to the external sector in the form of: i) widening trade deficit; and ii) weak financials inflows. Additionally, certain proposed FY26 budgetary measures are also likely to widen the trade deficit more.
  • Moreover, the MPC also pointed towards the recent sharp increase in oil prices as a result of the evolving geo-political situation in the Middle-East. Accordingly, the MPC has flagged Pakistan’s external outlook as susceptible to multiple risks like heightened geopolitical tensions, volatility in international oil prices, possible adverse impact of proposed budgetary measures, and potential shortfalls in planned financial inflows.