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Another Week, Another Pulse!

What a week it's been! From political chaos to financial shakeups, the headlines have been non-stop. On one side of the globe, tensions between Afghanistan and Pakistan flared up again with clashes along the border. Back home in Pakistan, protests erupted as the religious group TLP stirred up trouble with their planned march.

But the global drama didn't stop there. Over in China and the U.S., trade tensions reached a boiling point. In a major move, China decided to charge fees on U.S.-linked ships, while the U.S. hit back by raising tariffs on Chinese goods to 100%. The market felt the impact immediately. In just one hour after the U.S. announcement, over $7 billion in investments vanished, and a huge wave of crypto bets worth over $19 billion were wiped out in a single day.

Meanwhile, things aren’t looking great for Pakistan’s economy either. The World Bank has lowered its growth forecast for this year, and the IMF has agreed to let the government collect a little less in taxes, down by about Rs. 160 billion. On a different note, gold prices in Pakistan took a sharp dip, while silver prices kept climbing. It’s been a wild week, with plenty of twists and turns that have left everyone on edge. 

Here’s your five-minute recap to help you plan ahead.

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The Pakistan Stock Exchange (PSX) wrapped up the week in negative territory as the KSE-100 index declined by 5,892 points, or 3.49%, week-on-week to close at 163,098, halting its five-week rally. The pullback came amid widespread profit-taking across key sectors, even as macroeconomic sentiment remained positive with the National Accounts Committee (NAC) revising Pakistan’s FY25 GDP growth forecast upward to 3.04% from the earlier 2.68%.

Unity Foods Ltd Begins Biofuel Feedstock Exports, Secures $30 Million in Contracts

Unity Foods Limited has begun exporting biofuel feedstock, securing $30 million in export contracts for the fiscal year — a strategic step that marks its entry into the global renewable energy market. It matters because this move diversifies the company’s revenue beyond food products, strengthens Pakistan’s export base in a high-demand sustainable sector, and positions Unity Foods at the forefront of the country’s green industrial transformation. Next, the company is likely to scale up production, explore new international markets, and attract greater investor interest as it deepens its footprint in biofuels.

Frontier Ceramics Drops Billion Rupee Expansion Plan Amid Market Saturation

Frontier Ceramics Limited has dropped its Rs1.13 billion expansion plan, deciding not to move forward with a new business unit after concluding that Pakistan’s ceramics market is already flooded with supply and margins are too thin to justify new investment. The pullback highlights how weak construction demand and rising costs are forcing manufacturers to rethink growth ambitions. Frontier’s move isn’t just about saving cash — it’s a signal that the industry’s expansion phase is over, at least for now, and that survival will depend on efficiency rather than scale. The company will now unwind its land deal and focus on stabilizing operations until the market shows signs of recovery.

Pakistani Banks Deliver Highest Returns in Asia-Pacific: S&P Global

Pakistani banks led Asia-Pacific in returns last quarter, with The Bank of Punjab and The Bank of Khyber topping S&P Global’s list as a market rally lifted valuations. The surge reflects renewed investor confidence amid easing regional tensions and stronger diplomatic ties with the U.S., signaling growing optimism around Pakistan’s financial sector and its rebound potential.

China, Pakistan sign RMB 5b water deal

China and Pakistan have signed a RMB 5 billion agreement to jointly develop smart water management and conservation projects aimed at modernizing Pakistan’s outdated water infrastructure. The partnership between Cyclon Tech and Shaanxi Water Development marks a major step toward tackling the country’s chronic irrigation inefficiencies and water shortages. By combining Chinese engineering expertise with Pakistan’s local experience, the collaboration is set to boost agricultural productivity, strengthen climate resilience, and support long-term food and water security.

World Bank Lowers Pakistan’s Growth Forecast to 2.6%

The World Bank has cut Pakistan’s FY25 growth forecast to 2.6%, down from 3.1%, citing the economic fallout from recent floods. The disaster is also expected to push inflation to 7.2% and reduce Punjab’s agricultural output by about 10%, affecting major crops. Growth is projected to rebound to 3.4% in FY26, supported by recovering agriculture, lower inflation, and improved investor confidence.

🇵🇰 Are We Saving Enough, Pakistan? 💭
With a savings rate of just 12.95% of GDP, Pakistan trails behind its neighbors — Bangladesh (34.9%) 🇧🇩 and India (30.9%) 🇮🇳. The gap is real 📉 — but so is the opportunity to close it. Let’s make our money work as hard as we do! 💰✨

_{Today’s Pulse by Capital Stake is brought to you by Hubab Irfan}