💸 Debt, 🪙 Crypto, 📈 Markets

Another Week, Another Pulse!

The past week brought no shortage of volatility, with headlines spanning geopolitics, climate, sports, and the economy. Rising tensions following attacks on Qatar and the federal cabinet’s declaration of a climate and agriculture emergency kept the news cycle busy. A rare surprise came from cricket, where hundreds of India vs Pakistan Asia Cup tickets remained unsold, unsettling both fans and investors.

On the domestic front, the federal government announced relief in electricity bills for flood-affected residents, while tax waivers are also under consideration. Meanwhile, the IMF confirmed its upcoming EFF review mission, which will assess whether Pakistan’s fiscal policies and emergency measures are sufficient to tackle the crisis.

Despite widespread devastation, the automotive sector showed resilience, with car, SUV, pickup, and van sales reaching 14,050 units in August posting a 62% year-on-year jump and 27% increase month-on-month. Adding to the positives, Pakistan signed a landmark $500 million deal with U.S. Strategic Metals (USSM) to kick-start investment in the critical minerals sector.

Looking ahead, all eyes are on the Monetary Policy announcement due today, with expectations that interest rates will remain unchanged amid ongoing flood-related challenges. In parallel, the government has also fast-tracked plans to establish a Social Media Regulatory Authority.

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During the week, the Pakistan Stock Exchange (PSX) witnessed muted activity, with the KSE-100 Index inching up by 163 points (0.1% WoW) to settle at 154,440. Trading remained lackluster as investors opted for profit-taking, while concerns over the flood situation and uncertainty ahead of the monetary policy announcement kept sentiment subdued.

Thal Limited Announces Wholly Owned Subsidiary for Grain Storage and Milling

Thal Limited is setting up a modern grain storage and milling facility in Muzaffargarh, Punjab, through a wholly owned subsidiary, with an investment of up to $16 million. The project, to be completed in 20 months, will handle major crops like wheat and corn using advanced storage and milling technology. The development is significant as it addresses Pakistan’s persistent challenges of poor storage and post-harvest losses, while also supporting food security and improving grain quality. Once operational, the facility is expected to strengthen the agriculture sector and add long-term value to the country’s food supply chain.

At-Tahur Board Approves New Subsidiary for Trading Operations

At-Tahur Limited, the company behind the PREMA dairy brand, has announced plans to set up a wholly owned subsidiary in Pakistan, pending regulatory approvals. The new unit will focus on trading agricultural materials such as maize silage, maize corn, and bypass fat, which are essential inputs for livestock and dairy farming. The move signals At-Tahur’s strategy to expand beyond dairy production into related agri-trading operations, potentially strengthening its supply chain and diversifying revenue streams.

Cocomo Maker Ismail Industries to Establish Wholly-Owned Subsidiary in Europe

Ismail Industries Limited, the maker of Cocomo and other popular confectionery brands, has announced plans to set up a wholly owned subsidiary in Spain, subject to regulatory approvals. The new unit will act as a strategic entry point into the European Union, giving the company access to one of the world’s largest consumer markets. This expansion marks an important milestone in Ismail Industries’ global growth strategy, aimed at strengthening its international presence and positioning its brands to capture new opportunities across Europe.

Barkat Frisian Agro to Invest Rs. 690 Million in Poultry Layer Farming

Barkat Frisian Agro Limited will invest Rs. 690 million in poultry layer farming and a feed facility to strengthen its supply chain. The project includes two farms with 225,000 birds, producing about 200,000 eggs daily (20% of current demand). With production set to begin in 15 months, the move will help reduce costs and meet up to 50% of the company’s egg needs in-house.

Pakistan Pushes Digital Finance Forward with CBDC Trials and Crypto Licensing Drive

Pakistan took two major steps in its digital finance journey this week. The State Bank of Pakistan confirmed that its central bank digital currency (CBDC) has entered the trial phase, aimed at enabling cashless transactions without the need for a bank account and boosting financial inclusion. At the same time, the newly formed Pakistan Virtual Asset Regulatory Authority (PVARA) invited global crypto exchanges and service providers to apply for licensing under the Virtual Assets Ordinance 2025. With over 40 million users and $300 billion in annual trading volume, Pakistan is positioning itself to develop a regulated, transparent digital assets ecosystem while ensuring compliance with global standards.

Debt surges by Rs9tr in one year

Pakistan’s government debt (See Data) rose by Rs9 trillion in one year, reaching Rs77.9tr by June 2025, driven mostly by domestic borrowing, State Bank data shows. Debt servicing now consumes nearly half the federal budget, forcing cuts in development spending. With $26bn in external repayments due in FY26 and added pressure from flood-related costs, economists warn the country’s fiscal challenges could worsen.

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