Amendments 🏛️ Prices ⛽ Surplus 💰

Another Week, Another Pulse!

It’s been another intense week on Pakistan’s political and economic front. The spotlight was on the 27th Constitutional Amendment Bill, introduced in Parliament after receiving cabinet approval. The proposed amendment seeks to reshape key areas of governance — including the establishment of a new constitutional court to deal with constitutional matters, the revival of executive magistrates to strengthen local administration, adjustments in how federal funds are distributed among provinces, and changes to the process for appointing senior judges and military leaders. The proposal has sparked widespread debate and calls for nationwide protests.

On the global stage, climate concerns took center stage. The World Bank warned that Pakistan could lose up to 20% of its GDP by 2050 if decisive climate action isn’t taken, urging a multi-year strategy to strengthen environmental and economic resilience. Both the World Bank and IMF emphasized the need for deeper reforms — from fairer trade agreements and flexible exchange rates to lower energy costs — to reverse decades of declining exports and build long-term stability.

Economically, the picture was mixed. Inflation rose to 6.24% in October, cement dispatches jumped 15%, but the trade deficit widened by 56%. The Economic Coordination Committee approved a gradual phase-out of the Home Remittance Incentive Schemes to ensure smooth foreign exchange inflows. Meanwhile, the Privatisation Commission made key decisions on selling PIA shares and outsourcing the management of major airports in Islamabad, Lahore, and Karachi.

Lastly, in a significant step toward digital security, the government has made it mandatory for both public and private institutions to adopt cybersecurity standards — a move aimed at protecting Pakistan’s critical digital infrastructure.

In other news, Pakistanis are increasingly turning to crypto investments, with estimates suggesting that $20–30 billion is already invested in digital assets. Experts caution that without a clear regulatory framework, the country risks missing out on a major economic opportunity and undermining investor confidence.

Startups are also seeing positive changes: the SECP now allows corporate bank accounts to be opened on the same day a company is registered, making it faster and easier to get a business off the ground.

For federal employees, the government has raised the rent ceiling by 85%, effective November 1, 2025, offering relief against rising living costs.

In a surprising development, reports suggest that gold worth $636 billion may lie beneath Tarbela Dam. While these findings still need verification, if confirmed, they could have enormous economic potential for the country.

Here’s your five-minute recap of everything you need to know.

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The Pakistan Stock Exchange continued its weekly slide, with the KSE-100 index losing 2,039 points (1.26%) to close at 159,593, marking the third consecutive week in the red. The index swung between a high of 163,935 and a low of 158,253 amid mixed macroeconomic signals. Investor sentiment remained cautious due to rising inflation, a widening trade deficit, and sluggish domestic demand, which collectively weighed on market activity and kept trading in a negative trajectory.

PSX Issues New Guidelines for Opening Trading Accounts of Minors

The Pakistan Stock Exchange has introduced new rules for opening trading accounts for minors through a guardian, making it easier for individuals under 18 to start investing legally. This is significant as it formalizes the process, sets clear compliance standards for brokers, and provides a framework to protect young investors. Next, brokers will begin implementing these guidelines, and regulators will oversee adherence to ensure accounts are operated safely and transparently.

Govt posts rare Rs2.12tr surplus in first quarter

The government reported a rare fiscal surplus of Rs2.12 trillion (1.6% of GDP) in the first quarter of FY2025-26, driven by record interest income from the State Bank, a 30% rise in petroleum levy collections, and strong provincial cash surpluses. This comes despite the previous year ending in a 5.4% deficit, highlighting the impact of one-time gains from SBP profits. Looking ahead, sustaining this surplus will depend on controlling expenditures and managing recurring revenues, as temporary boosts may not last throughout the year.

Govt awaits IMF nod to unveil first industrial policy

The government has drafted Pakistan’s first National Industrial Policy (NIP) to boost manufacturing, create jobs, and increase exports, but it is waiting for the IMF’s approval before rolling out key incentives. The policy aims for $60 billion in exports, 6% GDP growth, and 8% manufacturing growth by 2030, but acknowledges challenges like high borrowing costs, unstable power, expensive industrial land, and complex regulations. A meeting with IMF officials is expected soon to discuss the financial impact of these incentives, which will determine when and how the policy can move forward.

Global eyes on Pakistan’s market — MSCI adds 14 PSX companies 🔍

MSCI has added 14 Pakistani companies to its Frontier Market and Small Cap indices — a move that reflects growing investor confidence and could attract greater foreign inflows.

New additions include:

Askari Bank, Bank of Punjab, Meezan Bank, AGP, Big Bird Foods, Gatron, Ghani Chemical, Ghani Global Holdings, International Packaging Films, Ittehad Chemicals, Javedan Corp, Sitara Chemical, SPEL Limited, and The Organic Meat Company.

Several of these companies already feature among the top holdings of leading equity funds, potentially positioning those funds to benefit from increased global interest.

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