Pakistan stocks close positive amid reports of circular debt plan finalisation

KARACHI: The Pakistan Stock Exchange benchmark KSE-100 Index closed higher on Friday, extending gains from the previous session, amid reports that the government is close to finalising a plan to retire circular debt and growing optimism over the upcoming federal budget, analysts said.

The index ended the session at 119,691.09 points, up 719.69 points or 0.60 per cent, after hitting an intraday high of 119,913.88. The session remained volatile, with analysts attributing the swings to the last day of rollover week.

“Investors gradually positioned themselves ahead of the financial year 2025-26 budget, showing selective interest across sectors,” Ismail Iqbal Securities said in a note.

Market sentiment was lifted by the federal energy minister’s statement that the circular debt retirement plan is nearing finalisation — a move expected to boost energy sector liquidity, support reforms, and improve investor confidence, Al Habib Capital said.

Optimism also grew around potential budgetary support for agriculture and construction, it added.

“Stocks closed bullish, led by blue-chip scrips in oil, banking and fertiliser sectors amid hopes of positive budget announcements,” said Ahsan Mehanti, CEO at Arif Habib Commodities.

Also read: Banks seek SBP regulatory waivers for Rs1.275 trillion circular debt financing

He cited likely relief for oil refineries, real estate, and the agri sector, as well as a proposed 1.5 per cent tax on imports aimed at supporting local industry and maintaining rupee stability.

According to Topline Securities, major positive contributors to the index included FFC, MEBL, HUBC, PKGP, ENGROH and MCB, collectively adding 668 points.

In terms of traded value, ATRL (Rs1.66 billion), DGKC (Rs878 million), HUBC (Rs807 million), FFC (Rs708 million), MEBL (Rs661 million), and MARI (Rs607 million) led market activity.

Overall, traded volume fell by 22 per cent day-on-day to 579 million shares, while traded value dropped 4.5 per cent to Rs22.7 billion.