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KSE-100 gains over 500 points on hopes of IMF programme revival

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  • KSE-100 index closes at 41,862.77 points with a gain of 1.25%.
  • Market players assumed fresh positions at the bourse today.
  • Shares of 325 companies were traded during the session.

KARACHI: The Pakistan Stock Exchange (PSX) opened the short trading week — after a five-day-long Eid ul Adha holiday — in the green with a gain of over 500 points.

The market players assumed fresh positions in hopes of revival of the stalled International Monetary Fund (IMF) programme which will provide a much-needed breather to the economic crisis of Pakistan.

Depreciation of the Pakistani rupee against the US dollar coupled with political instability owning to the upcoming by-polls in Punjab failed to impact to the investment climate.

The benchmark KSE-100 index traded between hope and despair, which eventually let loose the bulls, and pulled the bourse into the green.

At close, the benchmark KSE-100 index closed at 41,862.77 points with a gain of 518.76 points or 1.25%.

Benchmark KSE-100 index intra-day trading curve. — PSX data portal
Benchmark KSE-100 index intra-day trading curve. — PSX data portal

A report from Arif Habib Limited noted that the bulls triumphed in the trading session at PSX today. The benchmark KSE-100 index traded in the green zone as value buying was witnessed across the board, although the exploration and production sector remained in the limelight.

“Investors gained confidence over expectation of resumption of the IMF programme. Volumes stayed healthy in the main board,” the brokerage house noted.

Sectors contributing to the performance included banks (+140.4 points), exploration and production (+102.6 points), technology (+71.4 points), cement (+65 points) and oil marketing companies (+35.2 points).

Shares of 325 companies were traded during the session. At the close of trading, 212 scrips closed in the green, 90 in the red, and 23 remained unchanged.

Overall trading volumes rose to 164.82 million shares compared with Thursday’s tally of 99.08 million. The value of shares traded during the day was Rs6.48 billion.

TPL Properties was the volume leader with 14.93 million shares traded, gaining Rs0.94 to close at Rs20.62. It was followed by Sui Northern Gas Pipelines with 13.57 million shares traded, gaining Rs2.80 to close at Rs39.75 and Oil and Gas Development Company with 9.97 million shares traded, gaining Rs3.17 to close at Rs83.63. 

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Pakistan’s lunar mission ‘ICUBE-Q’ reaches the moon orbit.

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Pakistan’s lunar mission (ICUBE-Q) entered orbit around the moon on Wednesday.

Pakistan’s historic lunar mission (ICUBE-Q) launched from Hainan, China, on Friday aboard China’s Chang’E6 spacecraft.

According to the IST, the satellite ICUBE-Q was planned and developed in partnership with China’s Shanghai University SJTU and Pakistan’s national space agency SUPARCO.

The ICUBE-Q orbiter is equipped with two optical cameras to image the lunar surface. ICUBE-Q has now been integrated into the Chang’e6 mission after successfully qualifying and testing it.

Chang’e6 is the sixth lunar exploration mission launched by China.

The launch event was streamed live on the IST website and social media platforms. Chang’6, China’s Lunar Mission, will land on the Moon’s far side to collect surface samples before returning to Earth for further research.

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The FIA and KE have launched 13 successful operations against power theft.

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In March 2024, operations were performed in collaboration with the FIA, targeting locations such as Marora Goth, Peer Abad, Ellahi Colony Metroville, Merchant Navy Housing Society, Johar Colony, Willayatabad, and Architects Society, among others. As a result of these collaborative efforts, six FIRs regarding power theft have been filed. Furthermore, four people were caught, with three being remanded to jail and one being released after paying the fines. To enforce governance and maintain accountability, a total fine of PKR 44.33 million was issued. Additionally, in partnership with FIA Balochistan, KE has conducted anti-theft operations in Hub, where teams from KE and FIA thoroughly investigated places including as markets, retail plazas, residential and commercial properties.

Regular actions against illicit power use are part of KE’s everyday activities to prevent line losses and protect the safety and security of the electrical infrastructure. Since the start of the fiscal year (FY 2023-24), over 24,000 kunda removal drives have been performed, resulting in the elimination of over 190,000 unlawful connections and the recovery of over 260,000 kgs of illegal kunda wires.
Ongoing raids involving law enforcement personnel and other agencies have resulted in the registration of around 994 FIRs against various individuals throughout Karachi. Since the launch of the nationwide power theft campaign in September 2023, more over 100,000 incidences of theft of 180 million units of electrical power have been identified in KE’s service zone.

In response to KE’s anti-theft initiatives, a KE spokesperson stated that “71% of KE’s feeder network is loadshed-free. However, 29% of the KE network remains difficult, with electricity theft and nonpayment of bills still key issues. Serious theft cases have been found in Baldia, Surjani, Korangi, Orangi, Liaqatabad, Landhi, and Lyari, among other places. Highlighting the repercussions of electricity theft, which may jeopardize the safety standards of the power network, the KE Spokesperson noted that PKR 117 million has been recovered.

Recognizing the challenges faced by current macroeconomic conditions, especially high inflation, KE is taking proactive steps to assist customers by establishing facilitation camps throughout the city. Since July 2023, approximately 240 recovery camps have been hosted around KE’s operational zone to help customers resolve billing concerns, including supporting payment plans with manageable installments.

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Budget 2024–25: The government intends to abolish tax exemptions.

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According to the specifics, the federal government plans to phase out existing tax breaks for the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) regions in the upcoming fiscal year.

The decision to eliminate tax breaks in the FATA/PATA region is estimated to produce Rs 100 billion in annual revenue for the national government.

According to sources close to the issue, the Federal Bureau of Revenue (FBR) has already created a preliminary proposal for the next fiscal year’s budget, and the FBR head has also informed the finance minister on it.

Currently, the federal government provides tax breaks of Rs 1,200 billion to various industries; however, the IMF has instructed Pakistan to phase out these tax breaks in the next budget.

Pakistan’s president, Asif Ali Zardari, passed the Tax Laws (Amendment) Bill 2024 last week in accordance with Article 75 of the constitution.

According to a President House News release, the bill proposes amending legislation governing taxes and duties.

The bill’s revisions include changes to sections 30DDD, 43, 45B, 46, and 47 of the Sales Tax Act of 1990.

Similarly, the amendment bill amended sections 29, 33, 34, and 38 of the Federal Excise Act 2005, as well as sections 122A, 124, 126A, 130, 131, 132, 133, and 134A of the Income Tax Ordinance 2001.

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