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Business Recorder
10-07-2025
- Automotive
- Business Recorder
Car sales in Pakistan jump 43% in fiscal year 2024-25
KARACHI: Car sales in Pakistan jumped by 43% in the fiscal year 2024-25, the Pakistan Automotive Manufacturers Association (PAMA) reported on Thursday, an increase that analysts attributed to stable macroeconomic environment, introduction of more variants, lower interest rates, and improving consumer sentiment. In FY25, car sales (including jeeps and pick-ups) stood at 148,023 units, against 103,829 units reported in FY24. In June 2025, car sales clocked in at 21,773 units, reflecting a 64% year-on-year (YoY) and 47% month-on-month (MoM) rise. 'The YoY growth is supported by a more stable macroeconomic environment, introduction of more variants, lower interest rates, easing inflation, and improving consumer sentiment,' said Myesha Sohail from Topline Research in a statement. Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY According to PAMA data, except for farm tractors, sales of all vehicles including two, three and four-wheelers gained momentum. Sales of jeeps-cum-pickups increased by 61% to 35,820 units. Trucks and buses sales went up by 103.2% to 4,444 units and by 73.6% to 788 units, respectively. Sales of motorcycles and rickshaws also shot up by 32.1% to 1,518,752 units. Meanwhile, sales of farm tractors sharply fell down by 36.4% to 29,192 units as both farmers and progressive farmers face economic issues due to climate change and lower prices of their output. New Year effect: Pakistan car sales soar 73% MoM in January 2025 Talking to Business Recorder, auto sector expert Muhammad Sabir Shaikh said tractor sales fell because growers could not get better prices of their respective last agricultural produce. A dramatic decrease in the interest rate and easy leasing policies of banks pushed up car sales and customers are nipping down to new vehicles while getting rid of old ones, Shaikh added.
Business Recorder
14-06-2025
- Business
- Business Recorder
‘Bloodbath' on PSX
KARACHI: The Pakistan Stock Exchange (PSX) plunged on Friday as escalating regional tensions, following Israel's strikes on nuclear and other sites in Iran, triggered a wave of intense selling. The sharp drop wiped out recent gains and marked a clear shift from the week's earlier cautious optimism to deepening bearish sentiment. The benchmark KSE-100 Index bled throughout the day, closing with a massive loss of 1,949.56 points, a 1.57 percent decrease, to settle at 122,143.57 points. The index fluctuated between an intraday high of 123,058.06 and a low of 121,604.60. The steep decline on Friday was a severe intensification of Thursday's performance, where the index had only shed 259.56 points to close at 124,093.12 points. On Friday, the BRIndex100 dropped by 207.55 points or 1.57 percent to close at 13,037.26 points with a total trading volume of 698.1 million shares. The BRIndex30 also fell by 745.25 points, or 1.94 percent, ending at 37,726.29 points with 400.1 million shares traded. Analysts noted that the sell-off was broad-based, dragging down all major indices. Topline Research noted that KSE-100 Index largely traded in negative zone during the trading session in line with international and regional, which came down on Israel attack on Iran. Top negative contribution to the index came from ENGROH, FFC, LUCK, BAHL, MEBL, SYS and PPL, as they cumulatively contributed 863 points to the index. The widespread sell-off was accompanied by a significant drop in market activity compared to previous day. The total traded value in the ready market slumped to Rs 29.56 billion from the previous day's much healthier Rs 50.54 billion. Similarly, turnover decreased to 968.34 million shares from 1.02 billion shares traded on Thursday. The overall market capitalization too eroded substantially, falling to Rs 14.75 trillion from Rs 14.95 trillion a day earlier, wiping out Rs 20 billion in investor wealth. Despite the downturn, several companies saw heavy trading volumes. Pervez Ahmed Co was the volume leader with 116.66 million shares traded, closing at Rs 2.93. It was followed by WorldCall Telecom, which saw 100.89 million shares change hands to close at Rs 1.45. Capital Sec was also active, with a turnover of 85.32 million shares and its closing rate was Rs 3.06. The market remained highly volatile throughout the day. Supernet Technologies Limited led the gainers, rising by Rs 41.74 to close at Rs 873.40. Faisal Spinning Mills Limited also performed well, adding Rs 29.96 to reach Rs 329.96. On the losing side, PIA Holding Company Limited saw the biggest drop, falling by Rs 2,098.79 to close at Rs 18,889.10, while Khyber Textile Mills Limited lost Rs 199.39, ending at Rs 1,794.55. As the market was mostly negative, selling pressure dominating the session. Out of 469 active companies, 304 saw their share prices fall, 130 gained, and 35 remain unchanged. The BR Automobile Assembler Index closed at 20,814.19 points, down by 215.84 points or 1.03 percent, with a trading volume of 11.3 million shares. The BR Cement Index ended at 10,509.01 points, losing 275.45 points or 2.55 percent, as 75.1 million shares were traded. The BR Commercial Banks Index settled at 36,417.30 points after shedding 464.59 points or 1.26 percent, with 67.7 million shares changing hands. In contrast, the BR Power Generation and Distribution Index inched up by 15.09 points or 0.07 percent, closing at 22,355.69 points with a turnover of 28.0 million shares. The BR Oil and Gas Index dropped 163.83 points or 1.39 percent to finish at 11,610.90 points, with 44.3 million shares traded. Meanwhile, the BR Technology and Communication Index declined by 60.59 points or 2.04 percent, closing at 2,902.99 points, leading the market in volume with 154.4 million shares traded. According to Ahsan Mehanti of Arif Habib Corp, Stocks at the Pakistan Stock Exchange (PSX) plunged on Friday as escalating tensions in the Middle East triggered a wave of panic selling. Market sentiment took a sharp hit after reports of Israeli strikes on Iranian targets, raising fears of a broader regional conflict, he added. The pressure intensified as global equities tumbled on geopolitical risks, while a weakening rupee added to the nervousness among investors the combination of heightened regional uncertainty and a falling local currency played a catalytic role in driving the market's sharp downturn. Copyright Business Recorder, 2025
Business Recorder
09-06-2025
- Business
- Business Recorder
‘Lowest in 9 years': Pakistan agriculture sector projected to grow only 0.56% in FY25
Pakistan's agriculture sector will grow marginally by 0.56% in the financial year 2024-25, as per the provisional data unveiled in the Economic Survey for FY25, against 6.40% growth recorded in the sector in 2023-24. The growth in the FY25 would be the 'lowest in 9 years', Topline Research said in a statement. 'Agri sector is expected to post lowest growth of 0.56% in 9 years (FY16: +0.41%) vs. 5 years avg. growth of 3.38%,' it said. The lower growth was attributed to decline in important crops production and cotton ginning by 13.5% and 19.0%, respectively. While other crops posted growth of 4.78%, livestock, forestry and fishing are expected to post growths of 4.72%, 3.03% and 1.2% respectively. On the other hand, important crops and cotton are expected to post declines of 13.49% and 19.03%, respectively. 'The crop sub-sector witnessed negative growth as a result of weather-related adverse challenges,' read the Economic Survey. 'Overall, the agriculture sector in FY25 showed a combination of resilience and challenges across its sub-sectors. The growth trend emphasizes the sector's enduring importance, while also highlighting the urgent need for modernisation, climate adaptation, knowledge enhancement, and productivity improvements to sustain its contribution to economic growth and social well-being.' In the Kharif 2024 season, water availability was 60.5 million acrefeet (MAF), lower than average system usage and Kharif 2023. For Rabi 2024-25 water availability remained at 29.4 MAF. The Rabi season observed reduced rainfall, while the Kharif season saw above-average rainfall, according to the survey. Agriculture in South Asia is shaped by a shared agro-climatic context, but countries vary in crop priorities due to policy choices, market demands and natural resource endowments. The Economic Survey said the country's cotton ginning sector showed volatility and cyclical patterns in the last six years. In FY 2025, the sector witnessed a contraction of 19.03% over exceptional growth of 47.23% the previous year. 'This decline reflects underlying structural challenges, adverse weather conditions and pest outbreaks.' To address challenges in the sector, the survey mentioned that the government is pursuing a 'multi-pronged approach focused on improving irrigation efficiency, advancing seed sector reforms, scaling up digital agriculture initiatives, and strengthening R&D and extension services'. 'These measures are essential not only for short-term stability but also for fostering a resilient, self-sustaining agriculture sector capable of driving inclusive economic growth and rural transformation,' the Economic Survey said. 'Agriculture in South Asia is shaped by a shared agro-climatic context, but countries vary in crop priorities due to policy choices, market demands and natural resource endowments.' Last week, Pakistan Kissan Ittehad Council (PKIC) President Khalid Mehmood said the agriculture sector witnessed a dramatic slowdown in the FY25, as he claimed that the farmers collectively suffered losses of around Rs2.2 trillion in wheat alone Khokhar stated that since May 2024, farmers have collectively suffered losses of around Rs2,200 billion in wheat alone — equivalent to 23.15% of the crop sector's contribution to gross domestic product (GDP) for the fiscal year 2023–24. The resulting financial strain had weakened farmers' purchasing power and affected the productivity of other crops as well, he said. PKIC has also warned the government against imposing general sales tax (GST) on agricultural inputs in the upcoming budget, stating that such a move would deal a final blow to the already struggling agricultural sector and further damage the national economy.
Business Recorder
22-05-2025
- Business
- Business Recorder
Budget 2025-26: Pakistan govt likely to bring YouTubers, freelancers into tax net
Pakistan government is projected to impose new taxes including on the income of freelancers, vloggers, and YouTubers, aiming to raise additional taxes worth around Rs500-600 billion in the upcoming budget for the financial year 2025-26, according to a research report issued on Thursday. In its report titled 'Pakistan Federal Budget FY26 Preview', Topline Research said the government was expected to give a revenue collection target of Rs14.1-14.3 trillion to the Federal Board of Revenue (FBR), showing a year-on-year growth of 16-18% in tax collection in FY26 compared to FY25. Out of this required 16-18% growth, 12% would be achieved through autonomous growth driven by real gross domestic product (GDP) growth of 3.6% and inflation of 7.7%. 'The remaining 4-5% growth translates into additional tax measures of Rs500-600 billion,' the report estimated. The budget presentation for FY26 is scheduled for June 2, 2025. Various institutions have recommended government for taxing income from social media platforms like YouTube, Tiktok amongst others. The initial proposal by the Institute of Cost and Management Accountants of Pakistan (ICMAP) was to implement tax rate of 3.5% on social media income. The institute expects additional collection of Rs52.5 billion (from social platforms), the report mentioned. Tax on pensioners Besides, the government is contemplating to impose a tax rate on pensioners in range of 2.5-5% on monthly pension of over Rs400,000 per month, the report said, citing media reports. Last year, the government also tried to consider taxing this area. 'However, we believe, in FY26 budget government will impose a tax, aiming to raise Rs20-40 billion from this.' In the first nine month of the ongoing fiscal year 2024-25, Pakistan has already spent Rs673 billion on pension cost, annualising to Rs0.9-1 trillion, the report said. The Pakistan Bureau of Statistics (PBS) has already adapted a key measure wherein GST (general sales tax) on few commodities would be calculated based on the prices published by it. For example, in case of sugar, the GST was being calculated on Rs72.22 per kg while the market price surged to Rs150/kg. This change in base for GST calculation can fetch additional Rs70-80 billion annually. 'We expect this change to be incorporated in FY26 finance bill.' Tax on ultra processed food items (health tax) is widely being circulated to 'bring health awareness and to reduce prevalence of obesity, type 2 diabetes, stroke, dental caries, cardiovascular disease and blood pressure'. As a first step, the government is planning to increase FED (federal excise duty) on such items (like biscuits snacks) by 20% with objective to take total FED to 50% by FY29. 'We expect government to impose this tax in addition to increase in FED on cigarettes as well.' The government has informed the International Monetary Fund (IMF) regarding removal of non-filer category. It has submitted a bill to the parliament, which if approved will restrict non-filers from engaging in key economic transactions such as vehicles and real estate purchase, according to the report. The bill was taken under discussion by Senate committee and there were some technological changes required in FBR system to effectively implement this. 'We believe, this section 114C would be introduced in budget, however, after the debate, some changes in threshold levels or some relaxation in year 1 of its implementation cannot be ruled out.' The government has also informed the IMF to considering imposing petroleum development levy (PDL) on furnace oil (FO) in addition to the levy already collected on petrol and diesel, Topline Research said. Furthermore, the government also plans to increase PDL by Rs5/liter on petrol and diesel (HSD) in form of carbon tax to be implemented gradually in 2 years. 'If this is implemented, we believe government can collect additional Rs35-80 billion from PDL on FO sales assuming no changes on GST front and PDL imposed is in range of Rs40-78/liter.' 'IMF has assigned to collect a minimum Rs295 billion from retailers in the first half of FY26 (till Dec 2025) and has also added this as Indicative Target. We believe, government will take steps like increase in advance taxes on distributors etc to satisfy this IMF requirement,' the report said. In October 2024, IMF report mentioned some tax measures for Pakistan including increase in FED by 5% on fertiliser and pesticide. 'With this step, government can raise incremental amount of over Rs30 billion it estimated. 'In our view, likelihood of increase in FED on both the products is high since this is IMF requirement.' Among other tax measures, elimination of concessionary or reduced GST rate on remaining products is 'highly likely', removal of exemptions for FATA/PATA region is likely, implementation of agriculture income tax is likely by provincial governments, and increase in GST on luxury items like appliances aircraft, ships, jewellery, cosmetics, cigarettes, high-end mobile phones is also expected in FY26 budget. In addition to this, the government is considering giving tax relieves to salaried people and real estate sector, reduce duties on import of vehicles or relaxation of age limit from 3 years to 5 years, and announce subsidy on housing finance, the report said.
Business Recorder
15-05-2025
- Business
- Business Recorder
7 Pakistani cos added to MSCI FM & SC Indexes
KARACHI: Morgan Stanley Capital International (MSCI) has added seven Pakistani companies to its Frontier Market (FM) and Small Cap Indexes in its latest semi-annual index review, boosting the country's global equity market visibility. Morgan Stanley Capital International (MSCI) is a global research, data, and technology company that provides indices, research, and other services to investors worldwide. As per details cited by Topline Research, the minimum threshold for free float and total market capitalization for selection in the Frontier Market Index was set at $78 million and $155 million, respectively. Three Pakistani companies — Fauji Cement Company, DG Khan Cement Company, and Maple Leaf Cement — have been added to the MSCI Frontier Markets Index, effective from May 30, 2025. This brings the total number of Pakistani companies in the index to 26. Pakistan's weight in the MSCI Frontier Market Index is estimated to be around 6-6.5%, with the addition of the three cement companies expected to attract inflows of $5-8 million, assuming $2-3 billion in funds tracking the index globally. In the Small Cap Index, four Pakistani stocks have been added: Archroma Pakistan, At-Tahur Limited, Engro Polymer & Chemicals, and Pakistan Reinsurance. DG Khan Cement has been moved to the main FM Index, while AGP Pharma and Agritech Limited have been deleted. Topline Research noted that Interloop, Searle Limited, and Abbott Laboratories have been retained in the index despite not meeting the $78 million free float threshold, thanks to the buffer rule. This rule allows for flexibility in index inclusion. The firm drew parallels with a similar past instance where TRG was retained despite not meeting the threshold, only to be removed in a subsequent review. The index review holds particular significance for Pakistan as it continues to rebuild investor confidence following its 2021 downgrade from Emerging Market to Frontier Market status. The inclusion is anticipated to attract moderate passive fund inflows and enhance the visibility of Pakistani equities among global frontier market investors. Copyright Business Recorder, 2025
