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Raast handles PKR 44 trillion as Pakistan’s instant-payment network scales nationwide

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Raast handles PKR 44 trillion as Pakistan’s instant-payment network scales nationwide

ISLAMABAD, Nov 3 (Wealth Pakistan) – Pakistan’s flagship instant-payment platform, Raast, solidified its position as the backbone of the country’s digital-finance transformation during fiscal year 2024-25, facilitating record transaction volumes and becoming South Asia’s fastest-growing public payment network.

Record surge in digital payments

According to the Annual Payment Systems Review FY2024-25 issued by the State Bank of Pakistan (SBP), Raast has processed 1.9 billion transactions worth PKR 44.3 trillion since its launch. In FY2024-25 alone, the system handled 1.27 billion transactions valued at PKR 29.6 trillion — a ninefold increase within just three years.

The platform’s reach expanded rapidly to 45 million registered Raast IDs by June 2025, reflecting strong adoption among individuals and businesses.

New modules boost adoption

During the year, the SBP introduced Person-to-Merchant (P2M) and Bulk Payment modules, allowing instant corporate disbursements, salary transfers, and QR-based retail payments. Seventeen banks covering 97 percent of the market integrated Raast into their corporate portals, creating a unified payment environment.

Corporate transactions routed through Raast grew exponentially, from PKR 7.3 billion in July 2024 to PKR 347 billion by June 2025, demonstrating business confidence in cost-free, real-time settlement systems.

Merchant network expands across Pakistan

The rollout of the P2M feature brought more than 838,000 merchants into the instant-payment ecosystem. The SBP and partner banks conducted extensive awareness campaigns to promote QR code adoption among small retailers, fuel stations, and service providers.

With the QR feature, customers can now transfer funds instantly from any bank or digital wallet directly to a merchant, bypassing traditional card networks. This shift has made transactions faster, cheaper, and more transparent, boosting liquidity across retail markets.

Transforming inclusion and business efficiency

By removing intermediaries, Raast has improved efficiency and accessibility for both consumers and small businesses. Analysts describe it as critical national infrastructure that connects micro-entrepreneurs, gig workers, and informal-sector participants to the formal banking system.

The SBP emphasised that Raast is a key element of its Digital Pakistan Vision, which aims to expand financial inclusion, enhance transparency, and accelerate economic formalisation through digitalisation.

Future expansion and global recognition

Looking ahead, the SBP plans to extend Raast to cross-border remittances and government-to-person (G2P) disbursements. Integration with the Accountant General Pakistan Revenues (AGPR) portal and major social-welfare schemes is currently under testing.

Officials say the platform’s interoperability architecture positions Pakistan among the world’s top adopters of instant-payment standards. The central bank views Raast’s progress as evidence of the success of low-cost, large-scale digital finance, providing a model for replication across other developing economies.

Wallets and QR codes reshape e-commerce as cards lose ground in Pakistan

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Wallets and QR codes reshape e-commerce as cards lose ground in Pakistan

ISLAMABAD, Nov 3 (Wealth Pakistan) – Pakistan’s retail payments landscape experienced a major shift in fiscal year 2024-25 as consumers and merchants rapidly moved away from card-based transactions toward wallets and account-to-account digital payments.

Digital wallets dominate e-commerce

According to the Annual Payment Systems Review FY2024-25 released by the State Bank of Pakistan (SBP), nearly 93 percent of all e-commerce payments were made through digital wallets and bank accounts, while only 7 percent used debit or credit cards. The trend highlights the growing preference for instant, low-cost payment channels integrated with mobile-banking applications.

Rapid growth in merchant acceptance

During the year, the number of point-of-sale (POS) terminals increased 56 percent to 195,849, while QR-enabled merchants exceeded 1.09 million. These channels together processed over one million transactions daily, valued at PKR 2.1 trillion — up 39 percent in volume and 37 percent in value from FY2023-24.

The SBP attributed this expansion to “soft POS” technology, which allows ordinary smartphones to accept payments without costly hardware. This innovation has helped thousands of small retailers, restaurants, and service vendors join the digital marketplace.

Cards lose share despite rising numbers

Although the number of active debit cards rose 9 percent to 53 million and credit cards grew 8 percent to 2.2 million, their share in overall digital spending declined further. Consumers are increasingly choosing QR-based and wallet payments because they offer instant settlement, fewer fees, and greater convenience.

The central bank said that its regulatory measures have encouraged banks and fintech firms to promote low-cost acceptance infrastructure, enabling a more inclusive digital ecosystem.

Merchants gain access to digital finance

The review also noted that merchant empowerment was a defining feature of FY2024-25. Digital payments, once confined to large retail chains, have now reached small community shops and roadside vendors. Faster settlement times and digital transaction histories have improved merchants’ access to formal credit channels.

More than 30 banks and Payment Service Providers (PSPs) participated in merchant-acquisition drives during the year, reflecting growing private-sector participation in the digital economy.

Economic impact and future outlook

Economists say the growing use of wallets and QR codes is delivering wider economic benefits. Reduced cash handling lowers theft risk and operational losses, while stronger record-keeping supports taxation and business formalisation.

At the same time, domestic payment systems are reducing reliance on imported card networks, saving foreign-exchange costs linked to international royalties.

The SBP expects the upward trend to continue in FY2025-26 as interoperability among wallet providers improves and merchants receive more incentives for digital acceptance. Pilot projects are under way to connect Raast person-to-merchant (P2M) transactions directly to merchant accounting systems, making settlements faster and simpler.

Officials said Pakistan is now on course to achieve full digital acceptance for retail commerce by 2028, a major milestone under the Digital Pakistan Vision.

Digital payments cross PKR 612 trillion as 88pc of retail transactions go cashless

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Digital payments cross PKR 612 trillion as 88pc of retail transactions go cashless

ISLAMABAD, Nov 3 (Wealth Pakistan) – Pakistan’s shift toward a cash-lite economy gained unprecedented speed in fiscal year 2024-25 as digital retail payments expanded across all channels.

Record surge in digital transactions

According to the Annual Payment Systems Review FY2024-25 issued by the State Bank of Pakistan (SBP), the country processed 9.1 billion retail transactions worth PKR 612 trillion. This marked a 38 percent rise in volume and a 12 percent increase in value compared with the previous year. For the first time, 88 percent of all retail payments were executed through digital platforms such as ATMs, POS terminals, internet portals, and mobile-banking apps. Only 12 percent of transactions were carried out at over-the-counter points or agent outlets.

The SBP attributed this milestone to the growing use of smartphones, the expansion of fintech services, and continued policy incentives for banks to broaden digital access.

Expanding national payment infrastructure

Pakistan’s payment infrastructure continued to grow rapidly. The number of ATMs rose from 18,957 to 20,341, while cash-deposit machines nearly doubled to 1,038. POS terminals recorded a 56 percent increase to reach 195,849, and QR-enabled merchants crossed 1.09 million. The central bank noted that soft-POS, or smartphone-based acceptance, was the main factor driving this expansion by allowing small merchants to go cashless without investing in costly hardware.

Growing adoption of mobile and internet banking

The report also highlighted strong growth in customer adoption. Mobile-banking users reached 24.1 million, internet-banking users 14.9 million, and branchless-banking app users 79.2 million. Electronic-money wallets expanded from 3.7 million to 5.8 million.

Electronic-money institutions processed PKR 471 billion worth of transactions, almost double the previous year’s level. Their share in total digital payment value rose to 29 percent from 21 percent in FY2023-24, reflecting their growing role in retail finance.

Part of Digital Pakistan Vision 2028

The SBP underlined that this rapid digitalisation supports the Digital Pakistan Vision 2028, which aims to formalise the economy, deepen financial inclusion, and reduce dependence on cash. Digital payments also help create transparent business records and audit trails that can widen the national tax base.

Economists observe that the FY2024-25 performance reflects the positive network effects of earlier regulatory reforms such as the Raast instant payment system, EMI licensing, and new clearing mechanisms.

Inclusion through low-value digital payments

The digital wave is also helping to bridge the urban–rural divide. Low-value transfers through mobile and wallet accounts grew faster than high-value transactions. Agents in far-flung districts increasingly handled domestic remittances and small bill payments through branchless channels, bringing previously unbanked citizens into the formal financial network.

Outlook for FY2025-26

With digital infrastructure now covering almost all districts, the SBP expects electronic transactions to maintain double-digit growth during FY2025-26. The central bank said sustained fintech innovation, customer awareness programmes, and strong cybersecurity measures will be essential to preserve public trust as Pakistan moves into the next phase of its digital-finance transformation.

UAE firm seeks to operate Islamabad Airport

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UAE firm seeks to operate Islamabad Airport

ISLAMABAD, Nov 2 (Wealth Pakistan): The Abu Dhabi–based investment company ADQ has formally approached the Government of Pakistan through the UAE Embassy to manage and operate Islamabad International Airport under a government-to-government (G2G) framework. The development marks a major milestone in Pakistan’s plan to modernize its airports through international partnerships.

ADQ’s Interest and Consultations

According to documents reviewed by Wealth Pakistan, the Abu Dhabi Developmental Holding Company (ADQ) has conducted several site visits and multiple meetings with Pakistani officials to discuss the draft G2G framework agreement. The draft has already been vetted by the Law Division.

The government has also initiated talks with other international investment authorities to explore further interest. A meeting was held on July 3, 2025, with representatives from the Qatar Investment Authority (QIA), the Special Investment Facilitation Council (SIFC), the Ministry of Defence, and the Pakistan Airports Authority (PAA). Preliminary information was shared, and QIA indicated that it would evaluate the proposal internally. However, a formal response from Qatar is still awaited.

Engagement with Gulf Partners

Meanwhile, a delegation from Saudi Arabia, comprising members of the Saudi-Pak Joint Business Council, visited Pakistan from October 7 to 11, 2025. Following directions from the SIFC, detailed presentations on Karachi, Lahore, and Islamabad airports were provided to the delegation. The Government of Pakistan is awaiting further feedback or an expression of interest from the Saudi side.

Negotiation Committee Formed

To advance discussions, the federal cabinet, acting on the recommendation of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), has established a high-level negotiation committee. The committee, chaired by the Advisor to the Minister for Privatization, has been tasked with negotiating the outsourcing of Islamabad International Airport with ADQ.

A Pakistani delegation led by the Advisor to the Prime Minister on Privatization, along with senior officials from the Ministry of Defence and the Pakistan Airports Authority, will visit the UAE soon. The visit aims to finalize discussions with ADQ’s leadership and review the draft agreement.

Modernization of Pakistan’s Airports

The Government of Pakistan is actively pursuing a strategy to outsource the landside management of its three major international airports — Islamabad, Karachi, and Lahore. Under this plan, the Pakistan Airports Authority will retain control of airside operations such as navigation, safety oversight, and landing charges.

The private operator will manage passenger services, terminal facilities, and both aeronautical and non-aeronautical revenues. This includes retail, food, logistics, and other commercial operations within the airport premises.

Ensuring Transparency and Efficiency

Officials say the outsourcing initiative is part of a broader policy to modernize key national infrastructure through transparent and competitive partnerships. The goal is to align Pakistan’s airport operations with international standards and create investor-friendly, efficient aviation hubs.

The government believes that collaboration with experienced international partners such as ADQ will enhance service quality, attract new investment, and strengthen Pakistan’s connectivity with the global economy.

China disburses $2m for Punjab economic and technical cooperation project

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China disburses $2m for Punjab economic and technical cooperation project

ISLAMABAD, Nov 2 (Wealth Pakistan): China has disbursed USD 2 million for the Economic and Technical Cooperation Project in Punjab, according to the latest Monthly Foreign Economic Assistance Report issued by the Ministry of Economic Affairs. The funding reflects Beijing’s ongoing financial engagement in Pakistan’s provincial development and institutional capacity-building programs.

Strengthening Technical Infrastructure

The Punjab project aims to strengthen Pakistan’s technical infrastructure, enhance institutional linkages, and support long-term development cooperation between the two countries. The latest disbursement underscores China’s focus on practical, results-driven initiatives within its bilateral development framework with Pakistan.

This collaboration goes beyond the large-scale infrastructure projects linked to the China–Pakistan Economic Corridor (CPEC). During September 2025, China’s total disbursements to Pakistan reached USD 2 million, while cumulative Chinese assistance for the first quarter (July–September) of FY2025–26 amounted to USD 9.75 million, combining both grants and loans.

Continued Support Across Provinces

In addition to the Punjab project, China has continued funding several reconstruction and rehabilitation initiatives across Pakistan. These include:

  • Reconstruction of fully damaged schools in Bara District, Khyber Pakhtunkhwa (USD 4.47 million)

  • Construction of houses in Balochistan (USD 6 million)

  • Establishment of the New Generation Geodetic Datum of Pakistan (USD 1.08 million) under the Defense Division

These projects highlight China’s broad-based development approach, targeting education, housing, and technical capacity across multiple provinces.

Major Ongoing Projects

China also remains engaged in several large-scale projects of national importance. Key initiatives include the Relocation of the Karakoram Highway (Thakot–Raikot section), the Pakistan Space Centre (SUPARCO), and the China–Pakistan Joint Research Centre on Earth Sciences at Quaid-e-Azam University.

These ventures are part of a wider development partnership aimed at modernizing Pakistan’s infrastructure, improving logistics, and building scientific capacity for sustainable growth.

Financial Stability and Strategic Partnership

Beyond development assistance, China continues to play a key role in Pakistan’s financial stability. The country maintains a SAFE China Deposit of USD 4 billion, which forms a critical component of Pakistan’s external financing structure and supports macroeconomic stability and balance-of-payments management.

The latest disbursement for Punjab’s Economic and Technical Cooperation Project highlights Beijing’s diversified development engagement, balancing grassroots technical support with large-scale economic collaboration.

Strengthening Bilateral Ties

Analysts view China’s continued financial inflows as a reaffirmation of Pakistan’s enduring partnership with Beijing. The relationship aims to promote sustainable growth, institutional reform, and greater economic integration between the two countries.

Pakistan Railways earns Rs3.95bn from cargo operations

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Pakistan Railways earns Rs3.95bn from cargo operations

ISLAMABAD, Nov 2 (Wealth Pakistan): Pakistan Railways (PR) has generated total revenue of Rs3.95 billion through its cargo vans operated directly by the department and outsourced partners over the past three years, reflecting the department’s continued efforts to boost freight operations and improve logistics efficiency across its network.

Revenue Growth Over Three Years

According to official documents reviewed by Wealth Pakistan, PR collected Rs836.247 million in FY2021-22, Rs1.184 billion in FY2022-23, and Rs1.939 billion in FY2023-24.

The consistent growth highlights the department’s gradual recovery in freight operations and its expanding role in supporting trade and transport across the country.

The data shows that the revenue generated from outsourced luggage and brake vans was nearly three times higher than that earned by the vans and trains operated directly by the department.

During the three-year period, PR-operated trains earned Rs1.169 billion — including Rs265.998 million in FY2021-22, Rs444.583 million in FY2022-23, and Rs458.410 million in FY2023-24.

In contrast, the outsourced vans generated Rs2.790 billion, comprising Rs570.249 million in FY2021-22, Rs739.630 million in FY2022-23, and Rs1.480 billion in FY2023-24.

Outsourcing Strategy and Mechanism

Officials at the Ministry of Railways said the decision to outsource freight and luggage vans was taken to meet the growing demand from the industrial and energy sectors.

The strategy also aims to enhance the efficiency of freight transport, connect major cities, and stimulate economic activity through improved trade logistics.

The outsourcing process is carried out through open tendering, where bids are advertised publicly.

Contracts are awarded after competitive evaluation based on transparent criteria. The benchmark for the bid is set according to the previous year’s revenue performance of luggage and brake vans.

Successful bidders are required to deposit 15 percent of the total contract amount in advance, with the remaining balance payable in 10 equal monthly installments.

The contracts are valid for two years and can be extended for an additional year based on mutual consent and satisfactory performance.

Freight Network and Stakeholders

The key stakeholders in the outsourcing framework include Pakistan Railways and private contractors operating luggage and brake vans under the agreements.

In previous years, Pakistan Railways managed a network of regular freight trains countrywide, including Cargo Express services from Karachi to Multan, Faisalabad, and Lahore; Kundian freight operations between Quetta and Taftan; container services for Prem Nagar and Qila Sattar Shah; oil transportation routes between Multan and Rawalpindi; and dedicated cargo express services supporting national industrial and commercial supply chains.

Minister Highlights Transformation

Speaking to the media outside Parliament House, Minister for Railways Muhammad Hanif Abbasi said that Pakistan Railways is undergoing a major transformation in its 77-year history.

He added that punctuality in train operations had improved significantly — from just 46 percent to over 86 percent — despite challenges related to the outdated railway infrastructure.

The minister emphasized that the department’s focus on freight and efficiency reforms would help strengthen financial sustainability and national connectivity.

Balochistan leads Pakistan’s blue economy drive with landmark shrimp farming project

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Balochistan leads Pakistan’s blue economy drive with landmark shrimp farming project

QUETTA, Nov 2 (Wealth Pakistan): Despite having abundant coastal resources and ideal climatic conditions, Pakistan has yet to tap its vast aquaculture potential — a sector with the capacity to reshape the nation’s economy and strengthen food security.

With shrimp exports currently valued at just USD 78 million compared to India’s USD 5 billion, experts believe that a strategic shift toward modern, large-scale shrimp farming could create thousands of jobs, attract investment, and position Pakistan as a regional seafood powerhouse.

Untapped Aquaculture Potential

Pakistan stands on the threshold of an aquaculture revolution. With extensive brackish water reserves, millions of acres of saline land, and rising global demand for seafood, the country has all the ingredients to make shrimp farming a major contributor to economic growth, employment, and exports.

Yet, despite these natural advantages, the sector remains underdeveloped and largely neglected in national economic planning.

For decades, agricultural policy has focused on traditional crops such as wheat, cotton, and sugarcane — commodities that once sustained the economy but now face challenges due to shrinking water resources and declining productivity.

Experts argue that it is time for a policy shift toward high-value, non-traditional sectors such as aquaculture and marine farming.

Balochistan Taking the Lead

That transition is beginning to take shape in Balochistan. According to Qaim Lashari, CEO of the Balochistan Board of Investment and Trade (BBoIT), shrimp farming in the province could transform the fisheries industry and generate up to 1,000 direct jobs, with more opportunities expected across the value chain.

“This initiative can uplift coastal livelihoods, boost seafood exports, attract private investment, and establish a resilient aquaculture ecosystem,” Lashari told Wealth Pakistan.

Public-Private Partnership Model

The project will be developed under a Public-Private Partnership (PPP) model by a consortium of national enterprises, including House of Kasib, Al-Karam Textile, Dhabeji Aqua Foods, Swat Ceramics, and Tufail Group.

Under the proposed structure, the private partner, Paravite, will finance, design, build, and operate the shrimp farm and processing facilities, while the Government of Balochistan will provide land, utilities, and policy facilitation.

The preliminary revenue-sharing arrangement allocates 80 percent of earnings to the private partner and 20 percent to the provincial government, with final details to be determined following a feasibility study.

Construction and mobilization are expected to take around 20 months before the first shrimp stocking begins.

Importantly, all project assets will revert to the government at the end of the concession period, ensuring long-term public benefit and sustainable growth.

A Step Toward the Blue Economy

Lashari noted that the initiative aligns with Balochistan’s broader blue economy vision, which aims to harness marine and coastal resources for sustainable development.

“If supported by reliable power, effective policy frameworks, and strong biosecurity standards, this model can be replicated across the province — positioning Balochistan as a key player in Pakistan’s emerging aquaculture sector,” he added.

With a favorable investment environment, technological innovation, and targeted government support, experts believe shrimp farming could finally unlock Pakistan’s dormant aquaculture potential — turning its coastal and saline lands into engines of economic growth, food security, and export diversification.

Rupee holds firm in October as macro stability improves

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Rupee holds firm in October as macro stability improves

ISLAMABAD, Nov 2 (Wealth Pakistan): The Pakistani rupee remained stable throughout October 2025, showing only mild fluctuations against major global currencies as prudent exchange management, improved foreign inflows, and steady macroeconomic indicators supported overall market sentiment.

Monthly Performance

According to the State Bank of Pakistan (SBP), the rupee began the month at Rs281.0732 (buying) and Rs281.5051 (selling) against the US dollar. It moved slightly to Rs280.9751 and Rs281.4069 by October 7, remained steady at Rs280.9425 and Rs281.3744 mid-month, and closed at Rs280.6969 and Rs281.1288 on October 31 — maintaining near-stable parity across the month.

Movement Against Major Currencies

In the euro market, the rupee opened at Rs330.4994 and Rs331.0055, firmed to Rs328.4997 and Rs329.0014 by October 7, then fell to Rs325.1227 and Rs325.6437 mid-month. It briefly recovered to Rs327.3644 and Rs327.8733 on October 28 before closing slightly weaker at Rs324.6896 and Rs325.1943.

The British pound showed similar volatility, starting at Rs378.4221 and Rs379.0087, dipping to Rs373.8380 and Rs374.2833 by mid-October, and ending lower at Rs369.0394 and Rs369.6222. The Saudi riyal traded within a narrow range, opening between Rs74.9424 and Rs75.0521 and closing slightly lower at Rs74.8506 and Rs74.9599.

The Japanese yen weakened from Rs1.9073 and Rs1.9102 on October 1 to Rs1.8223 and Rs1.8250 by the month’s end, while the Chinese yuan remained stable, moving from Rs39.4793 and Rs39.5311 to Rs39.4595 and Rs39.5116.

Expert Views

Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, told Wealth Pakistan that the rupee’s gradual appreciation reflected strong administrative measures implemented under the government and the Special Investment Facilitation Council (SIFC). “Foreign currency movement, especially in dollars, has been tightly managed, curbing speculation and supporting economic activity,” he said, adding that roughly USD 20 billion had been absorbed from the market over recent years to reinforce foreign exchange reserves.

Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, said the rupee’s performance in October was underpinned by stable policy rates and an improving current account balance. “The current account posted a USD 110 million surplus in September 2025, compared to a USD 325 million deficit a year earlier, taking the cumulative 3MFY26 deficit to USD 594 million,” he added.

Economic Indicators

Key economic indicators reflected stability in fundamentals. The Pakistan Bureau of Statistics reported a USD 3.3 billion trade deficit in September 2025, with exports at USD 2.5 billion and imports at USD 5.8 billion, bringing the first-quarter FY26 trade deficit to USD 9.4 billion. GDP grew by 3.04 percent in FY25, while public debt declined 1 percent month-on-month to PKR 77.5 trillion in August.

Remittances rose 11 percent year-on-year to USD 3.18 billion in September, taking first-quarter FY26 inflows to USD 9.6 billion. Inflation stood at 5.6 percent year-on-year in September, up from 3.0 percent in August.

IMF Agreement and Outlook

Pakistan’s staff-level agreement with the International Monetary Fund (IMF) under the USD 7 billion Extended Fund Facility (EFF) and USD 1.3 billion Resilience and Sustainability Facility (RSF) further boosted market confidence. The Real Effective Exchange Rate (REER) also strengthened to 101.73 in September from 100.09 in August, indicating improved competitiveness.

Analysts believe October’s currency stability was the result of effective policy coordination, stronger external balances, and disciplined exchange management. They expect the rupee to remain stable heading into November as macroeconomic stability continues to improve.

Rupee holds firm as reserves and macro indicators underpin stability

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Rupee holds firm as reserves and macro indicators underpin stability

ISLAMABAD, Nov 2 (Wealth Pakistan): The Pakistani rupee remained largely stable during the week ending October 31, 2025, supported by steady foreign exchange reserves, consistent remittance inflows, and a smaller current account deficit that sustained investor confidence against major global currencies.

Weekly Performance

According to the State Bank of Pakistan (SBP), the US dollar traded at Rs280.7804 (buying) and Rs281.2122 (selling) on October 27, before easing slightly to Rs280.7304 and Rs281.1622 on October 28. The rupee held steady midweek, closing at Rs280.7210 and Rs281.1529 on October 29, and settled marginally lower at Rs280.6969 and Rs281.1288 by October 31.

Movement Against Major Currencies

Among major counterparts, the euro opened at Rs326.4320 (buying) and Rs326.9398 (selling) on October 27, strengthening to Rs327.3644 and Rs327.8733 on October 28 before easing to Rs326.5395 and Rs327.0476 on October 29. It closed the week lower at Rs324.6896 and Rs325.1943 on October 31.

The British pound followed a similar pattern, appreciating to Rs375.0170 and Rs375.6205 on October 28, then retreating to Rs371.5618 and Rs372.1448 on October 29, and ending weaker at Rs369.0394 and Rs369.6222.

The Saudi riyal remained stable within a narrow band, trading between Rs74.8703 and Rs74.9820 on October 27, and Rs74.8506 and Rs74.9599 by October 31. The Japanese yen showed limited movement, rising from Rs1.8348 and Rs1.8375 on October 27 to Rs1.8468 and Rs1.8496 on October 28, before easing to Rs1.8223 and Rs1.8250 by the end of the week. The Chinese yuan also maintained stability, fluctuating slightly between Rs39.4703 and Rs39.5218 on October 27, and Rs39.4595 and Rs39.5116 on October 31.

Market Analysis

Arif Habib Limited reported that the rupee appreciated by 0.04 percent against the US dollar during the week, closing around Rs280.9. The brokerage highlighted that the SBP conducted cumulative net foreign exchange interventions amounting to USD 8.4 billion between June 2024 and July 2025, including USD 189 million in July 2025 alone. These interventions played a key role in maintaining exchange rate stability.

Expert Opinion

Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, told Wealth Pakistan that the rupee’s strength in October reflected improved macroeconomic fundamentals. “The rupee appreciated through October, supported by stable policy rates and a smaller current account gap,” he said.

The current account posted a USD 110 million surplus in September 2025, compared to a USD 325 million deficit in the same month last year. The cumulative deficit for the first quarter of FY26 stood at USD 594 million, showing an overall improvement in external balances.

Market recovers as bulls return; PSX ends last week down 2.3%

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Market recovers as bulls return; PSX ends last week down 2.3%

ISLAMABAD, Nov 2 (Wealth Pakistan): The benchmark KSE-100 Index remained under pressure for most of the outgoing week before staging a sharp rebound on Friday that trimmed earlier losses. The index closed the week at 161,632 points, down 3,862 points or 2.3 percent on a week-on-week basis.

Market Performance

Market participation remained moderate, with average trading volumes declining 35.5 percent week-on-week to 956 million shares. The average traded value also dropped 22.3 percent to USD 137 million. The late-week recovery helped offset earlier declines driven by weak corporate results and cautious investor sentiment.

According to Arif Habib Limited, commercial banks led the positive contribution to the index with 841 points, followed by fertilizer companies with 132 points, power generation and distribution with 26 points, paper and board with 23 points, and the property sector with 11 points.

In contrast, exploration and production (E&P) companies dragged the index down by 763 points, followed by investment banks with 666 points, oil marketing companies (OMCs) with 211 points, glass and ceramics with 185 points, and the cement sector with 163 points.

Scrip-Wise Movement

Among individual scrips, the major gainers were Fauji Fertilizer Company Limited (FFC), adding 335 points; National Bank of Pakistan (NBP), 291 points; Bank AL Habib Limited (BAHL), 257 points; United Bank Limited (UBL), 244 points; and Meezan Bank Limited (MEBL), 179 points.

The top laggards included Engro Corporation Limited (ENGROH), which lost 638 points; Mari Petroleum Company Limited (MARI), 313 points; Pakistan Petroleum Limited (PPL), 169 points; Oil and Gas Development Company Limited (OGDC), 166 points; and Engro Fertilizers Limited (EFERT), 145 points.

Macroeconomic Developments

On the macroeconomic front, the government raised PKR 1,134.5 billion in the latest T-bill auction against a target of PKR 950 billion, with strong participation amounting to PKR 2,132.4 billion. Yields declined on the 1-month and 3-month papers by 11 and 0.1 basis points respectively, while showing a slight increase on the 6-month and 12-month papers.

Broad money (M2) rose 0.5 percent week-on-week to PKR 39.8 trillion as of October 17, 2025. The State Bank of Pakistan kept the policy rate unchanged at 11 percent, in line with market expectations, while the rupee appreciated 0.04 percent against the US dollar to close at PKR 280.9.

Banking deposits grew 12.3 percent year-on-year to PKR 35.2 trillion, while advances increased 9.4 percent to PKR 13.5 trillion in September 2025. Oil production improved by 9.9 percent week-on-week to 66,834 barrels per day, while gas output fell 2.7 percent to 2,785 million cubic feet per day.

Market Sentiment and Outlook

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the index staged a strong comeback in the last session of the week, with the KSE-100 surging 4,899 points (3.13 percent) — its fourth-largest single-day gain. He attributed the rebound to optimism over a ceasefire agreement between Pakistan and Afghanistan, brokered in Istanbul with Turkish and Qatari mediation. Broad-based buying dominated the session, led by banking, fertilizer, technology, and cement stocks.

AKD Securities expects the market’s upward momentum to continue amid the successful IMF staff-level review, improving credit ratings, and easing yields. The brokerage anticipates stronger foreign inflows driven by improved relations with the United States and Saudi Arabia, attractive equity valuations, and limited alternative investment opportunities.

Analysts forecast that the index will consolidate within the 160,000–170,000 range, with strong support at the 160,000 level and potential to test 165,000 points in the coming sessions.

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