The Pakistan Stock Exchange (PSX) continued its bullish run on Tuesday, with the benchmark KSE-100 Index closing at a record 143,037.16 points, up 0.69%. The surge was driven by investor optimism around cement sector earnings and positive developments in energy sector reforms. Analysts noted that expectations of strong corporate results and improved liquidity kept the market in an upward trend.
A key factor behind the rally was the government’s announcement of a Rs780 billion reduction in circular debt, bringing the total down to Rs1.614 trillion. The Power Division credited the decline to lower line losses, better bill recovery, and cost-saving IPP agreements. However, some industrialists cautioned that the relief may be temporary if the government continues borrowing to clear dues.
In a related development, OGDCL received a Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL), part of a larger Rs132.7 billion settlement linked to 2013 term finance certificates. The remaining interest payments now stand at Rs84.3 billion, with monthly installments underway.
Fiscal data for FY25 showed improvement, with the budget deficit shrinking to 5.4% of GDP (from 6.8% in FY24). Tax revenues rose 26%, while non-tax revenues surged 66%, reflecting stronger economic management. With development spending up 43%, Pakistan’s financial health appears to be stabilizing—but sustainability remains a key question as markets reach new highs.