’Significant progress’ in IMF review triggers bull run at Pakistan stock market

’Significant progress’ in IMF review triggers bull run at Pakistan stock market
Stock brokers monitor share prices displayed on a digital screen during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on February 12, 2024. (AFP/ File)
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’Significant progress’ in IMF review triggers bull run at Pakistan stock market

’Significant progress’ in IMF review triggers bull run at Pakistan stock market
  • The KSE-100 index gained over 1,000 points to close the week’s first session at 116,199.59 points
  • The index may rise to a record 123,000 points by June, if Pakistan clears IMF review, analyst says

KARACHI: Pakistan’s stocks rallied on Monday and rose 0.6 percent to the highest close in more than two months as the International Monetary Fund (IMF) gave some positive signals about its ongoing review of the South Asian country’s $7 billion loan program.
The benchmark KSE-100 index gained more than 1,000 points in the day trade before closing the week’s first session at 116,199.59 points, according to stock analysts.
Sana Tawfik, head of research at Arif Habib Ltd, said the stock market could reach 123,000 points by June if Pakistan sails through the first review of the IMF program.
“This is the highest since January 6,” Tawfik said, citing two main reasons for Monday’s bullish run.
“One is the IMF that issued a statement saying significant progress has been made [in talks with Pakistan] toward reaching the staff-level agreement. [Secondly], the overall sentiment is positive.”
The Washington-based lender put all speculation about its negotiations with Islamabad to an end, when its mission chief, Nathan Porter, said last week the two sides had made “significant progress” toward reaching an accord.
“The mission and the authorities will continue policy discussions virtually to finalize these discussions over the coming days,” Porter said on March 15.
The IMF team stayed in Pakistan for more than two weeks and reviewed the country’s economic reforms under its Extended Fund Facility as well as a fresh loan of about $1.5 billion to increase its climate resilience and sustainability.
“The IMF described the progress of the $7 billion loan program as ‘strong’ despite the absence of a staff-level agreement,” said Naveed Nadeem, a senior equity trader at Topline Securities Ltd., in a note to clients.
Monday’s rally was driven by Mari Energies, Pakistan State Oil, Oil & Gas Development Company Ltd. Lucky Cement and Searle Pakistan that collectively added 658 points to the benchmark index at the Pakistan Stock Exchange.
The equity market also gained some strength from reports of the government’s plan to resolve the longstanding issue of power sector debt, or the circular debt, according to analysts.
“This performance was influenced by the government’s initiatives to tackle Pakistan’s power sector debt,” Nadeem added.


Pakistan calls Indian PM’s remarks about regional peace ‘misleading and one-sided’

Pakistan calls Indian PM’s remarks about regional peace ‘misleading and one-sided’
Updated 17 March 2025
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Pakistan calls Indian PM’s remarks about regional peace ‘misleading and one-sided’

Pakistan calls Indian PM’s remarks about regional peace ‘misleading and one-sided’
  • PM Narendra Modi said in a recent podcast that India’s attempts to foster peace with Pakistan were ‘met with hostility and betrayal’
  • India’s ‘fictitious narrative of victimhood’ can’t hide its involvement in fomenting militancy on Pakistan’s soil, Islamabad says

ISLAMABAD: Pakistan’s Foreign Office on Monday said Indian Prime Minister Narendra Modi’s recent remarks on a podcast about regional peace were “misleading and one-sided,” criticizing New Delhi for “conveniently” omitting the Kashmir dispute from discussions.
Modi, in a podcast with American computer scientist and podcaster Lex Fridman released on Sunday, said that India’s attempts to foster peace with Pakistan were “met with hostility and betrayal” and hoped that “wisdom would prevail” on the leadership in Islamabad to improve bilateral ties.
In response to Modi’s remarks, the Pakistani Foreign Office said India’s “fictitious narrative of victimhood” could not hide its involvement in fomenting militancy on Pakistan’s soil and the “state-sanctioned oppression” Indian-administered Kashmir.
The Muslim-majority Himalayan region of Kashmir has been a flashpoint between Pakistan and India since their independence from the British rule in 1947. Both Pakistan and India rule parts of the Himalayan territory, but claim it in full and have fought three wars over the disputed region.
“Instead of blaming others, India should reflect on its own record of orchestrating targeted assassinations, subversion and terrorism in foreign territories,” it said in a statement.
“Pakistan has always advocated constructive engagement and result-oriented dialogue to resolve all outstanding issues, including the core dispute of Jammu and Kashmir.”
The statement by the Pakistani Foreign Office was a reference to allegations against Indian agents of plotting assassinations in the United States (US) and Canada.
In Jan. 2024, Pakistan also accused India of “extraterritorial” and “extrajudicial” killings of two of its citizens on Pakistani soil, while it has consistently accused India along with other countries of fomenting militancy in its western provinces, particularly Balochistan.
New Delhi denies all allegations.
The Pakistani Foreign Office further said that peace and stability in South Asia have remained “hostage to India’s rigid approach and hegemonic ambitions.”
“The anti-Pakistan narrative, emanating from India, vitiates the bilateral environment and impedes the prospects for peace and cooperation,” it said.
“It must stop.”


Pakistan’s power generation dropped 15% MoM during February— report

Pakistan’s power generation dropped 15% MoM during February— report
Updated 17 March 2025
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Pakistan’s power generation dropped 15% MoM during February— report

Pakistan’s power generation dropped 15% MoM during February— report
  • Pakistan’s power generation cost declined by 13% year-on-year and 30% month-on-month during February 2025, says report
  • Financial analysts attribute power generation decline to a lack of industrial activity, increasing shift toward solar energy

KARACHI: Pakistan’s power generation dropped by 15% month-on-month (MoM) in February 2025, a report by a top brokerage firm said on Monday, which analysts attributed to reduced demand due to slow industrial activity and an increasing shift of customers toward solar energy. 

According to a report by brokerage firm Topline Securities, total electricity generation dropped by 3% year-on-year to 81,738 GWh over the first eight months of the fiscal year 2024-25 (from July-February). This was down from 84,317 GWh in the corresponding period last year, it said. 

“Pakistan’s power generation decreased by 2% YoY and 15% MoM to 6,945 GWh in Feb 2025,” Topline Securities said. 

The report cited a decline of 13% in power generation cost YoY and 30% MoM in February 2025, adding that in the first eight months of the current fiscal year, power generation cost declined by 3% to Rs8.8 per unit.

Financial analysts attributed the decline in power generation due to reduced demand as a result of lack of industrial activity and an increasing number of people shifting toward solar energy. 

“There is reduced demand due to industrial activity which you can also see in the large scale manufacturing (LSM) numbers,” Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., told Arab News. 

He said another reason for the decline in power generation was the increasing shift of residential consumers toward solar energy. He said commercial consumers had also installed their own captive plants that run on gas and coal. 

“This also shows a shift toward alternative [sources of energy] which decreases the grid’s usage,” he added. 

Samiullah Tariq, the head of research at Pakistan Kuwait Investment Company Ltd., agreed. 

“Reasons include reduced industrial activity, people leaving the [national] grid due to higher [energy] prices and solar adoption,” Tariq said. 

Pakistan has sought to ease fiscal pressure in recent months by undertaking energy reforms that reduce tariffs and slash capacity payments to independent power producers (IPPs). The federal cabinet approved a plan in January to renegotiate agreements with 14 IPPs in its bid to lower electricity costs and addressing the mounting circular debt.


Amid militancy surge, sale of toy guns, firecrackers banned in Peshawar ahead of Eid 

Amid militancy surge, sale of toy guns, firecrackers banned in Peshawar ahead of Eid 
Updated 17 March 2025
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Amid militancy surge, sale of toy guns, firecrackers banned in Peshawar ahead of Eid 

Amid militancy surge, sale of toy guns, firecrackers banned in Peshawar ahead of Eid 
  • Peshawar district administration imposes ban for 30 days, warns violators will face legal action 
  • Peshawar district administration imposes ban for 30 days, warns violators will face legal action 

ISLAMABAD: The administration in Pakistan’s northwestern Peshawar district recently banned the sale of toy guns and firecrackers for a period of 30 days to discourage “militant tendency” among children and foster a peaceful atmosphere ahead of Eid-Al-Fitr 2025, an official notification said. 

Children playing with toy guns and firecrackers on public holidays such as Eid is a common sight in Pakistan. The district administration in Peshawar bans traders from selling toy guns every year before Eid holidays to discourage gun culture in the country.

In a notification dated Mar. 15, Peshawar’s Deputy Commissioner Sarmad Saleem Akram announced he was imposing a ban on the sale of toy guns and firecrackers effectively immediately for 30 days under section 144 of the Code of Criminal Procedure. 

“I, deputy commissioner Peshawar, in exercise of powers conferred on me u/s 144 Cr.PC, do hereby order and impose ban on sale of toy guns and fire crackers etc within the limits of district Peshawar,” the notification said. 

“And whereas, to discourage nurturing of militant tendency and to maintain peaceful atmosphere of the district during Eid-Al-Fitr 2025, it is imperative to curb the menace.”

The notification said authorities would take action against anyone violating the ban, including shopkeepers and customers. 

The development takes place as Pakistan witnesses a surge in militant attacks in its western provinces bordering Afghanistan, especially the northwestern Khyber Pakhtunkhwa (KP) province. Islamabad accuses the government in Kabul of sheltering militants and facilitating cross-border attacks, a claim Afghanistan strongly denies. 


Pakistan revives Rajian-11 heavy oil well with advanced artificial lift technology

Pakistan revives Rajian-11 heavy oil well with advanced artificial lift technology
Updated 17 March 2025
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Pakistan revives Rajian-11 heavy oil well with advanced artificial lift technology

Pakistan revives Rajian-11 heavy oil well with advanced artificial lift technology
  • Rajian-11 was suspended since 2020 due to formation challenges, expected to produce 1,000 barrels of oil a day
  • ESP systems are common and efficient way to lift oil and gas from wells that are too deep, have low pressure for natural flow

ISLAMABAD: Pakistan’s Oil & Gas Development Company Limited (OGDCL) has revived production at heavy oil well Rajian-11 by installing an advanced air lift system, state broadcaster Radio Pakistan said on Monday.

Extending to 3,774 meters, work at Rajian-11 had been suspended since 2020 due to formation challenges, the company’s filing on PSX said last week. 

The oil field is located in District Chakwal and fully owned and operated by OGDCL under Gujar Khan E.L. It was discovered in August 1994 and has remained a key asset in the company’s portfolio.

Crude oil production in Pakistan increased to 64 BBL/D/1K (barrels of crude oil per day per 1,000) in November 2024 from 62 BBL/D/1K in October of 2024. Crude oil production in Pakistan averaged 68.67 BBL/D/1K from 1993 until 2024, reaching an all time high of 97.00 BBL/D/1K in December of 2016 and a record low of 50.00 BBL/D/1K in April of 1999, according to the US Energy Information Administration.

“OGDCL has started oil production from the Rajian-11 heavy oil well located in Chakwal district,” Radio Pakistan reported. 

“Rajian-11 heavy oil well had been inactive since 2020 but it has been reactivated with the help of an advanced artificial lift system,” the broadcaster added, referring to the installation of an Electrical Submersible Pump (ESP).

The well is expected to produce one thousand barrels of oil per day.

ESP systems are a common and efficient way to lift oil and gas from wells that are too deep or have low pressure for natural flow. A submersible electric motor is placed at the bottom of the well, and it drives a multistage centrifugal pump that lifts the fluids. ESPs are suitable for wells with low bottomhole pressure, low gas/oil ratio, high water cut, and low API gravity fluids.

“This achievement underscores OGDCL’s commitment to maximizing hydrocarbon recovery and operational efficiency, reinforcing its position as a leader in Pakistan’s energy sector,” OGDCL’s PSX filing said. 

“The Company successfully completed the well with an ESP in Tobra, Jutana, and Sakesar formations, restoring production to 1,000 barrels per day (BPD) of oil.”


Every attempt for peace with Pakistan met with ‘hostility, betrayal,’ says Modi

Every attempt for peace with Pakistan met with ‘hostility, betrayal,’ says Modi
Updated 17 March 2025
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Every attempt for peace with Pakistan met with ‘hostility, betrayal,’ says Modi

Every attempt for peace with Pakistan met with ‘hostility, betrayal,’ says Modi
  • In podcast with American computer scientist Lex Fridman, Modi hopes Pakistan chooses “path of peace“
  • Indian premier praises US President Trump, says he seems “far more prepared than before” in second term

NEW DELHI: Indian Prime Minister Narendra Modi said US President Donald Trump was ‘far more prepared’ for his second term, furnished with a clear roadmap, speaking in a podcast interview weeks ahead of reciprocal tariffs planned by Washington.
India is among the trading partners set to face the tariffs from April, which threaten to cause distress to its exporters in industries from automobiles to agriculture.
After Modi and Trump met last month, the two nations agreed to resolve tariff rows and work on the first segment of a deal by the fall of 2025, aiming to reach two-way trade of $500 billion by 2030.
“This time, he seems far more prepared than before,” Modi said in a podcast with American computer scientist and podcaster Lex Fridman released on Sunday, referring to Trump’s second term, which began in January.
“He has a clear roadmap in his mind with well-defined steps, each one designed to lead him toward his goals,” he added.
During the discussion, which ran more than three hours, Modi spoke on issues from diplomacy and artificial intelligence to his early life, in a conversation Fridman called one of the most “powerful” of his life.
Modi praised Trump for his graciousness and humility, underscoring a strong bond between the leaders.
“His (Trump’s) reflection showed his ‘America First’ spirit, just as I believe in nation first. I stand for India first, and that’s why we connect so well,” Modi said.

INDIA’S NEIGHBOURS

India’s relations with neighbor China improved last year after striking a milestone pact to lower military tension on their Himalayan border following talks between Modi and Chinese President Xi Jinping in Russia.
“Slowly but surely, trust, enthusiasm, and energy will return,” Modi said during the podcast, as the two countries work to restore relations to their state before a military border skirmish in 2020.
“But of course, it will take some time, since there’s been a five-year gap,” he said, adding that the focus of the two nations was to ensure their differences “do not turn into disputes.”
On ties with archfoe Pakistan, Modi expressed hope for peaceful relations.
“Every noble attempt at fostering peace was met with hostility and betrayal,” he said, adding, “we sincerely hope that wisdom prevails upon them and they choose the path of peace.”
The foreign ministries of China and Pakistan did not respond to Reuters requests for comment.