📈 Markets 🏛️ Policy 🌦️ Climate

Another Week, Another Pulse!

From climate warnings to economic shifts, this week was packed with important developments. The National Disaster Management Authority (NDMA) has issued fresh alerts of urban flooding across Sindh, Balochistan, and Southern Punjab, while the European Union announced €1.05 million (Rs. 350 million) in emergency aid to support flood-hit communities. A World Bank report also reiterated Pakistan’s growing vulnerability to natural disasters, including earthquakes, landslides, and water scarcity.

On the economic front, headline inflation eased to 3% YoY in August 2025, down from 4.1% in July, but rising food inflation—driven by flood damage—remains a concern. To tackle this, the Prime Minister’s standing committee has decided to intensify monitoring of essential commodities like wheat, rice, and sugar, and coordinate efforts with provincial governments. Meanwhile, Pakistan’s trade deficit widened to $2.9 billion in August, up 30.1% YoY.

In policy and regulatory updates, the federal government raised objections to the IMF’s draft Governance and Corruption Diagnostic Assessment, while the State Bank of Pakistan (SBP) announced plans to legalize virtual assets and introduce a central bank digital currency. 

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

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Following a brief pause, the Pakistan Stock Exchange (PSX) regained its bullish momentum, advancing 3.81% week-on-week (+5,659 points). The index opened at 149,079, touched a low of 148,500 and a record high of 154,511, before closing at 154,277.

Analysts attribute the rally to improved investor confidence, fueled by expectations of economic recovery, a narrowing trade deficit, and the possibility of a farmer relief package. The 150,000-point level has now emerged as a strong support, with momentum indicating further upside potential.

Searle Secures DRAP Approval to Launch Denosumab Injections in Pakistan

Searle has secured DRAP’s approval to launch Denosumab injections in Pakistan, a key drug for treating osteoporosis and certain cancers. The approval is significant as it brings a globally recognized therapy to the local market, broadening treatment options for patients while strengthening Searle’s pharmaceutical portfolio. With commercialization now underway, the company is positioned to enhance patient care, capture new market share, and deliver greater value to its shareholders.

Image REIT to Debut on PSX

IMAGE REIT, a Shariah-compliant hybrid and perpetual real estate investment trust managed by Sinolink REIT Management Company, is preparing to list on the Pakistan Stock Exchange with an IPO target of Rs. 920 million, part of its total Rs. 2,750 million fund size. Backed by income from two prime Karachi projects—a fully occupied commercial tower on Shahrah-e-Faisal and a residential-cum-commercial development on Tipu Sultan Road—the REIT offers investors exposure to both rental and sales income. The IPO will be conducted through a Book Building process, with units priced between Rs. 10 and Rs. 14, and a portion reserved for retail investors. Proceeds will go toward completing additional residential floors, further boosting the portfolio’s value, while CDC will act as trustee to ensure transparency.

SBP Governor Projects 3.25-4.25% Economic Growth for Pakistan in FY2026

SBP Governor Jameel Ahmad projected 3.25–4.25% growth in FY2026, citing record-low inflation, stronger reserves, and rising remittances as signs of stability. Inflation fell to 3.2% by June 2025, enabling steep rate cuts, while reserves improved to $14.3 billion. However, the Pakistan Textile Council warned that high costs and recent tax changes threaten export competitiveness, urging policy support through lower duties, capped sales tax, and subsidized financing. Both sides agreed to continue dialogue on measures to keep exporters globally competitive.

Pakistan Sets 5G Auction Timeline as Senators Debate Starlink’s Entry

Pakistan’s long-awaited 5G spectrum auction is set to be completed by December 2025, following directives from Prime Minister Shehbaz Sharif. The Auction Supervisory Committee, led by Finance Minister Muhammad Aurangzeb, will meet next week to review a consultant’s report and finalize the process, with officials pledging to conclude it within the year. At the same Senate Standing Committee meeting, lawmakers also raised concerns over Elon Musk’s Starlink seeking a license to operate in Pakistan. Several senators questioned Musk’s past remarks about the country, calling for a background check and even a public apology before approving Starlink’s entry. The committee has summoned regulatory bodies for further deliberations in its next session.

SECP Issues New Regulations for Digital Asset Management Services

The Securities and Exchange Commission of Pakistan (SECP) has issued new rules for Digital Asset Management Services (DAMS), setting standards for how Digital AMCs and traditional AMCs operate through apps, web portals, and other online platforms. The regulations, introduced via S.R.O.1438(I)/2025, aim to strengthen transparency, compliance, and investor protection across Pakistan’s growing digital investment landscape.

ADB approves $130m for Pak energy sector

The Asian Development Bank (ADB) has approved $130 million for Pakistan’s energy sector, with an initial $30 million immediately available. In a meeting with Federal Power Minister Sardar Awais Leghari, discussions focused on reforms, DISCO privatisation, and clean energy initiatives. Pakistan highlighted plans to privatise three distribution companies, expand renewable energy, and access green financing after shutting down 2,800 MW of fossil fuel plants ahead of schedule. ADB reaffirmed its support for privatisation, carbon market development, and modernization of the transmission and distribution system, while stressing continued collaboration to make electricity more affordable and sustainable.

SECP Pushes for Riba-Free Financial Sector with New Directive

The SECP has directed licensed entities to expand Shariah-compliant services, requiring policies by December 2025 and inclusion of at least one Shariah-compliant broker by June 2026. From July 2026 to June 2027, 20% of trades must be routed through such brokers. Entities are also encouraged to adopt takaful and Islamic asset management, while the PSX has been tasked with developing a Shariah-compliant trading mechanism and the CDC with enhancing digital visibility of Shariah-compliant intermediaries.

Tough negotiations and uncertainty ahead of OPEC+ meeting

As OPEC+ prepares for a key meeting on Sunday, uncertainty surrounds whether the “Voluntary Eight” — including Saudi Arabia and Russia — will stick to current output or consider a production hike. Oil prices, down 12% this year to $65–$70 per barrel, remain under pressure from rising non-OPEC supply and weakening demand. Analysts warn that even without further increases, excess supply could keep pushing prices lower in the months ahead.

📊 Market Trends – July 2025: Where Are People Investing?

Curious about how investors are shifting their strategies? Here’s what happened in July 2025 👇

✅ Top Gainers (Highest Investments):
✨ Shariah Compliant Fixed Rate / Return
📈 Index Tracker
💹 Equity

❌ Biggest Decliners:
📉 Shariah Compliant Asset Allocation
⚠️ Shariah Compliant Aggressive Fixed Income
🔻 Aggressive Fixed Income

🤔 Are these market trends making you rethink your investment strategy?

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