💰 Taxes, 🌍 Trade, 🌪️ Turbulence

Another Week, Another Pulse!

What a week it’s been — from soaring gold prices to shifting corporate tides, Pakistan’s economic scene was anything but quiet. Gold continued its glittering rise, up nearly 44% in just nine months, while inflation ticked higher to 5.6% in September 2025. The pinch didn’t stop there — petrol prices climbed by Rs. 4.07 per litre, and the trade deficit widened by 46%, painting a challenging picture. Yet, amid the pressure, the cement industry delivered some relief, posting an impressive 16.25% year-on-year growth in total dispatches during the first quarter of FY2026. The corporate world saw a major shake-up as Procter & Gamble (P&G) announced it would wind down its manufacturing and commercial operations in Pakistan, including Gillette, shifting instead to a third-party distributor model to keep its brands alive in the market. 

As the smog season makes its unwelcome return, Pakistan took a bold stance on climate action, seeking $565.7 billion in finance and technology support under its NDC 3.0 submission to the UN. On the policy front, the FBR imposed a 40% duty on commercial imports of used vehicles, while the IMF approved Rs. 500 billion in budget adjustments for flood-related costs but stressed the need for fiscal discipline. In a concerning development, the National Cyber Crime Investigation Agency (NCCIA) uncovered 139 online platforms involved in the illegal sale of citizens’ data, sparking alarm over digital privacy. And to close the week, consumers brace for a Rs. 1.98 per unit hike in electricity bills this October. From record-breaking highs to regulatory jolts, this week’s pulse captures a nation navigating both turbulence and transformation — one headline at a time. Here’s your 5-minute recap of everything you need to know.

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The stock market continued its remarkable upward streak this week, with the KSE-100 index inching closer to the 170,000 mark (gaining 4.15% YoY), fueled by strong investor momentum. Despite the IMF’s cautious remarks during the ongoing second review of the $7 billion Extended Fund Facility, confidence in equities remained high. The rally gained strength from steady buying by mutual funds and retail investors, as muted returns on fixed-income options and improving macroeconomic sentiment kept the bullish trend alive.

Airlink to Set Up Major Production Facility in Lahore’s Sundar Green Special Economic Zone

Airlink Communication Limited (AIRLINK) is set to build a state-of-the-art production facility at Lahore’s Sundar Green Special Economic Zone (SGSEZ), covering eight acres with 1.4 million square feet of infrastructure. The project, expected to start operations by the end of 2025, will benefit from ten years of fiscal incentives under the SGSEZ framework. The facility will produce and export mobile phones, laptops, LED TVs, and other electronics, boosting Pakistan’s manufacturing and export capacity. Backed by strong performance, Airlink reported earnings per share of Rs. 4.79 in the last quarter of FY25 and Rs. 12.01 for the full year, underscoring its continued growth and profitability.

IMF Tightens the Screws: Pakistan Faces New Power Sector Deadlines and Loan Talks Begin

The International Monetary Fund (IMF) has set 2031 as Pakistan’s deadline to completely eliminate circular debt in the power sector, while also demanding a zero annual increase and a revised plan to manage the existing debt. To raise revenue, the IMF has introduced a Grid Transition Levy on off-grid captive power plants that begins at 10 percent, increases to 15 percent in January 2026, and reaches 20 percent by August 2026, with the government aiming to collect Rs. 105 billion this fiscal year. 

At the same time, Pakistan has begun talks with the IMF for the release of a 1.2 billion dollar loan tranche, with the Fund seeking progress on anti-money laundering measures, asset declarations by government officials, and greater transparency in public spending. Recent floods have added to the pressure, causing an estimated Rs. 370 billion in losses and forcing the government to cut its growth target from 4.2 percent to 3.9 percent. With an external financing need of 26 billion dollars this year, Pakistan faces a challenging path to meet the IMF’s conditions and keep its economy on track.

Pakistan Repays $500 Million Eurobond, Strengthening Market Confidence

Pakistan has successfully repaid its $500 million Eurobond that matured on September 30, 2025, reaffirming its commitment to debt obligations. The move reflects improving fiscal discipline and stronger external buffers, as noted by Adviser to the Finance Minister Khurram Shehzad. With recent sovereign rating upgrades from Moody’s (to Caa1) and S&P Global (to B–, stable outlook), investor confidence is rising and Pakistan’s bonds are now trading at a premium. The government also secured a $4.5 billion Islamic finance facility from domestic banks to ease power sector debt and reduce fiscal pressure in line with IMF reforms.

FBR Extends Income Tax Deadline After Last-Minute Reversal

In a last-minute move, the Federal Board of Revenue (FBR) extended the income tax filing deadline for Tax Year 2025 from September 30 to October 15, 2025, just hours after declaring no further extensions. The decision, issued under Section 214A of the Income Tax Ordinance 2001, followed strong appeals from trade bodies, Tax Bar Associations, and the public for more time. The sudden U-turn provided relief to thousands of taxpayers rushing to meet the original deadline.

Government Launches Contribution-Based Pension Scheme

The government has rolled out the Federal Government Defined Contribution Pension Fund Scheme Rules, 2024, shifting from the old non-contributory system to a shared contribution model. Civilian federal employees will contribute 10% of their pensionable pay, while the government adds 12%. The reform aims to ease fiscal pressure and ensure pension sustainability, with payouts linked to investment returns. Implementation for the armed forces is yet to begin.

Beating the Benchmark: Top 10 Equity Funds vs KSE-100! 🚀

📈 The KSE 100 Index 1-Year Return is currently around +103.43%. As we analyzed the data 🔎 , we found several funds that didn’t just keep pace — they actually outperformed the index with even higher returns.

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