The Pakistan Stock Exchange (PSX) maintained its upward trajectory on Wednesday, with the benchmark KSE-100 Index climbing 1,248.58 points (0.87%) to close at 144,285.74. The rally was fueled by institutional buying, particularly in the oil and gas sector, following news that OGDCL received Rs7.7 billion in delayed interest payments from Power Holding Private Ltd (PHPL). Analysts noted that the index’s breakout past the 140,000 resistance level triggered fresh investor confidence.
The government approved Rs30 billion to settle pending claims under the Telegraphic Transfer Charges Incentives Scheme (TTCIS), which encourages remittance inflows through zero-cost transfers. This move aims to clear a backlog caused by higher-than-expected remittances. Separately, the State Bank of Pakistan (SBP) unveiled plans to borrow Rs6.175 trillion from commercial banks between August and October via Treasury bills and Pakistan Investment Bonds (PIBs). This preemptive borrowing aligns with IMF conditions to avoid central bank financing.
Despite recent rate cuts (1,100 bps since June 2024), the SBP held its policy rate at 11% last week due to inflation concerns. Meanwhile, OGDCL’s Rs132.7 billion circular debt settlement saw its first major payment, with the remaining interest expected by mid-2026. The company had previously recorded a Rs23 billion loss on discounted payments but has since reversed Rs10.6 billion of that valuation.
The KSE-100 has shown consistent strength, closing at 143,037.16 on Tuesday before Wednesday’s surge. With oil sector optimism, remittance inflows, and government fiscal measures driving activity, analysts remain cautiously bullish. However, inflation risks and external debt pressures could influence future trends. Investors will watch for further policy moves and corporate earnings to gauge the sustainability of this rally.