PSX Crosses 161,000 on Renewed Confidence
- The Pakistan Stock Exchange (PSX) experienced a meaningful rally on November 11, 2025, driven by progress on resolving the long-standing circular debt issue and the federal cabinet's approval...
- The PSX KSE-100 index closed higher, gaining 778.43 points (approximately 1.76%) to reach 44,774.93 points.
- Pakistan's circular debt is a complex financial problem where power generation companies (GENCOs), transmission companies, and distribution companies (DISCOs) are all interconnected through payment delays.
Okay, here’s a comprehensive, evergreen article based on the provided Dawn news excerpt, adhering to all your detailed instructions.It’s designed to be a robust, informative resource, not just a rehash of the original article. I’ve focused on expanding the context around circular debt in Pakistan,the implications of the ECC decisions,and the broader economic picture.
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Pakistan Stock Exchange Rebounds on Circular Debt Resolution & Constitutional Amendment
Table of Contents
The Pakistan Stock Exchange (PSX) experienced a meaningful rally on November 11, 2025, driven by progress on resolving the long-standing circular debt issue and the federal cabinet’s approval of the 27th constitutional Amendment. investor confidence surged, pushing the benchmark KSE-100 index back into its consolidation zone.
Key Market Drivers
The PSX KSE-100 index closed higher, gaining 778.43 points (approximately 1.76%) to reach 44,774.93 points. This positive movement was fueled by two primary factors:
- Circular Debt Settlement Plan: The Economic Coordination Committee (ECC) approved a comprehensive plan to address the pervasive circular debt, a chronic issue plaguing Pakistan’s energy sector. This included sanctioning Rs660 billion in sovereign guarantees against Rs1.225 trillion in commercial loans.
- 27th Constitutional Amendment: The federal cabinet’s approval of the 27th Constitutional Amendment aimed at revising the National Assembly and Senate seats based on the latest census results, helped alleviate political uncertainty.
Understanding Pakistan’s Circular Debt Crisis
Pakistan’s circular debt is a complex financial problem where power generation companies (GENCOs), transmission companies, and distribution companies (DISCOs) are all interconnected through payment delays. Essentially, DISCOs don’t collect enough revenue from consumers to pay GENCOs, leading to a cascading effect of unpaid bills. The government frequently enough steps in with subsidies and loans to keep the system afloat, but this adds to the national debt. The State Bank of Pakistan’s annual Report for FY23 details the systemic issues contributing to this crisis, including inefficiencies in the power sector, inadequate tariff structures, and governance challenges.
The ECC’s recent actions represent a significant attempt to break this cycle by providing financial backing to facilitate payments and address the underlying liquidity issues. However, experts caution that a lasting solution requires broader reforms in the energy sector, including privatization of DISCOs and improvements in revenue collection.
Sector Performance & Key stocks
The rally was broad-based, with several key sectors leading the gains:
- Energy Sector: Index-heavyweights like Oil and Gas progress Company (OGDCL) and Pakistan Petroleum Limited (PPL) benefited from the ECC’s decision to prioritize gas supplies to fertilizer plants, boosting investor sentiment.
- Fertilizer Sector: Engro Holdings, Fauji Fertiliser, and Engro Fertiliser saw substantial buying pressure due to the anticipated increase in gas availability, a crucial input for fertilizer production.
Collectively, Engro holdings, Fauji Fertiliser, Engro fertiliser, Oil and Gas Development company, and Pakistan Petroleum contributed 1,243 points to the index’s increase. Conversely, Pakistan Services, United Bank, AGP Ltd, and Meezan Bank collectively trimmed 199 points.
| Top Volume gainers | Shares Traded (Millions) |
|---|---|
| First National Equities Ltd | 7
|