Pakistan stocks hit record high as army chief backs economy — analysts

Local journalists report during a trading session at Pakistan Stock Exchange (PSX) in Karachi on May 12, 2025. (AFP/File)
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Updated 22 July 2025
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Pakistan stocks hit record high as army chief backs economy — analysts

  • KSE-100 index closes at 139,419 points as military chief’s assurance to businesses drives investor confidence
  • Engro, HBL, FFC among top gainers, trading volume crosses 627 million shares amid bullish sentiment

ISLAMABAD: The Pakistan Stock Exchange (PSX) hit an all-time high on Monday, buoyed by investor confidence following assurances of economic support to business leaders from the country’s powerful military, analysts said.

The benchmark KSE-100 index gained 1,202.03 points, or 0.87 percent, to close at a record 139,419.61, up from the previous close of 138,217.58.

The rally followed a widely reported meeting between business leaders and army chief Field Marshal Asim Munir on Sunday, during which he reportedly pledged the military’s backing for Pakistan’s economic revival. The delegation included representatives of the All Pakistan Textile Mills Association, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Lahore Chamber of Commerce and Industry (LCCI).

The army has not confirmed the meeting, but it was reported by nearly all major Pakistani media outlets. 

Investors also reacted positively to the government’s Senate gains and expectations of strong upcoming corporate earnings.

“Stocks closed at a new all-time high after business leaders’ meetup with Field Marshal Asim Munir assured military’s support for economic progress,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

Pakistan’s ruling coalition, led by Prime Minister Shehbaz Sharif, also achieved a significant political victory by securing a two-thirds majority in the Senate, following the Khyber-Pakhtunkhwa assembly elections, which Mehanti said had also helped the market. 

Market heavyweight stocks including Engro Corporation (ENGROH), Habib Bank Limited (HBL), Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Pakistan Petroleum Limited (PPL), and Oil and Gas Development Company (OGDC) collectively contributed 1,142 points to the index.

According to a market note from Topline Securities, the bullish momentum was driven by renewed investor confidence.

“This wave of optimism helped paint a bullish picture across the board, setting the tone for a potentially upbeat week ahead,” the brokerage house said.

Trading volume remained strong, with 627 million shares changing hands and total turnover reaching Rs34.6 billion. First Dawood Properties Limited (FDPL) led the volume chart with 44 million shares traded.


Pakistan partially rolls back solar policy, keeps old net-metering terms for pending applicants

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Pakistan partially rolls back solar policy, keeps old net-metering terms for pending applicants

  • Decision applies to applications submitted before Feb. 8, which will be processed under previous net-metering regulations
  • Move follows public backlash after Pakistan cut buyback rates for rooftop solar power under new billing framework

ISLAMABAD: Pakistan’s power minister has ordered electricity distribution companies to process all rooftop solar net-metering applications submitted before Feb. 8 under the previous, more favorable rules, according to a government statement released Thursday.

The decision comes after days of public criticism over new regulations that lowered the rate paid to solar users for surplus electricity, part of broader reforms aimed at easing financial pressure on loss-making power utilities.

The directive by Power Minister Sardar Awais Leghari applies nationwide, including the private utility K-Electric, and affects thousands of households and businesses awaiting approval to connect solar systems to the national grid.

“All electricity distribution companies, including K-Electric, will provide the net-metering facility for applications submitted up to February 8,” the ministry said in the statement, adding immediate implementation orders had been issued.

Authorities said 5,165 pending applications fall under the decision, adding about 250.822 megawatts of capacity to the national grid. The ministry said the move would remove uncertainty for consumers and directed companies to maintain transparency in processing requests.

Pakistan introduced grid-connected rooftop solar and net-metering in 2015 during a worsening power shortage, allowing consumers to sell excess electricity to the grid at the same tariff they paid utilities, a policy designed to encourage renewable adoption and reduce outages.

Over the past three years, soaring electricity prices and frequent blackouts triggered a rapid solar boom, with households and businesses installing panels to cut costs. Solar’s share of the energy mix rose sharply and tens of thousands of new connections were added annually.

Earlier this month, however, regulators replaced the net-metering regime with a net-billing framework separating purchase and sale prices, meaning consumers would receive a lower, market-linked rate for exported electricity while paying full tariffs for grid power.

Officials argued the change was necessary because widespread rooftop generation was reducing utility revenues and worsening the country’s circular debt crisis. Consumers and industry groups criticized the move, saying it undermined investment certainty.

The government has since moved to protect existing users and now pending applicants from the revised pricing mechanism, while new connections after the cutoff date will fall under the updated billing system.