The Pakistan Stock Exchange (PSX) extended its bullish streak on Wednesday, fueled by strong institutional buying, partial disbursement of remittance incentives, and renewed investor confidence across key sectors—particularly oil and gas.
The benchmark KSE-100 Index surged to an intraday high of 144,209.03 points, gaining 1,171.87 points or 0.82%. Earlier in the day, it had touched a low of 143,409.59, still up by 372.43 points or 0.26% from the previous close of 143,037.16.
“A series of positive developments, including a technical breakout above the 140,000 level, has sparked fresh buying, especially in the oil sector following payments to OGDCL,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
Adding to the market’s momentum, the government approved Rs30 billion out of the Rs58 billion pending claims under the Telegraphic Transfer Charges Incentives Scheme (TTCIS), aimed at boosting remittance inflows.
The TTCIS, initiated in 1985, provides a zero-cost send model for eligible remittance transactions.
The reimbursement backlog, caused by a surge in home remittances exceeding allocated funds, will now be cleared in phases through technical supplementary grants.
Separately, the government plans to borrow Rs6.175 trillion from commercial banks via Treasury bills and Pakistan Investment Bonds (PIBs) between August and October, according to the auction calendar issued by the State Bank of Pakistan (SBP).
This includes Rs3.675 trillion in T-bills of varying maturities and Rs2.5 trillion in fixed and floating-rate PIBs.
The strategy, designed to pre-fund budgetary needs ahead of potential monetary easing, aligns with IMF commitments to avoid central bank borrowing.
The SBP held its benchmark interest rate at 11% last week, citing renewed inflation concerns.
Since June 2024, the policy rate has been reduced by 1,100 basis points from a high of 22%.
Meanwhile, Oil and Gas Development Company Ltd (OGDCL) confirmed it received the first Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL) as part of a long-delayed Rs132.7 billion circular debt settlement.
The repayment stems from term finance certificates (TFCs) issued in 2013, with interest payments scheduled through mid-2026.
OGDCL had previously recognised the interest income over the TFCs’ lifecycle, with a carrying value of Rs170 billion as of March 2024.
The firm had booked a Rs23 billion loss due to discounted payment valuation, of which Rs10.6 billion had been reversed by March 2025.
On Tuesday, the Pakistan Stock Exchange (PSX)’s benchmark KSE-100 index closed the trading session at 143,037.16.
The index remained positive throughout the day, reaching an intraday high of 143,281.35 (+1,228.7) and a low of 142,235.71 (+183.07) points.
