What happened on 23 Dec 2025?

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Executive Summary

This briefing synthesizes key economic, corporate, and market developments as of December 24, 2025. In Pakistan, the government has finalized the landmark privatization of Pakistan International Airlines (PIA), selling a 75% stake to the Arif Habib consortium for Rs135 billion. This move is complemented by significant policy initiatives aimed at modernizing the economy, including the approval of the country's largest-ever spectrum auction to facilitate a 5G rollout and the launch of a cloud support program for tech startups. The domestic energy sector received a major boost with Pakistan Petroleum Limited (PPL) announcing a groundbreaking unconventional gas discovery in Sindh, signaling potential for increased energy self-sufficiency.

Globally, markets are exhibiting a buoyant, risk-on sentiment driven by expectations of Federal Reserve rate cuts and strong corporate performance. European shares reached a new record high, largely powered by pharmaceutical giant Novo Nordisk, while in the U.S., the S&P 500 is approaching its all-time peak. This optimism is tempered by robust U.S. Q3 GDP growth of 4.3%, which, while positive, has fueled concerns about future monetary policy. In Asia, India's central bank announced a substantial $32 billion liquidity infusion into its banking system. Concurrently, tax authorities in Pakistan are intensifying enforcement, launching a major probe into the healthcare sector to broaden the tax base.

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I. Pakistan: Major Economic and Policy Developments

A. Privatization of Pakistan International Airlines (PIA)

The Government of Pakistan has concluded the sale of a 75% stake in the national carrier, Pakistan International Airlines (PIA), for Rs135 billion.

  • Buyer: The winning bidder is a consortium led by Arif Habib Corporation Limited, which also includes Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
  • Transaction Details: The government will receive Rs10.12 billion in cash from the deal. The remaining portion of the Rs135 billion will be invested directly into PIA.
  • Auction Process: The Arif Habib consortium's bid of Rs135 billion surpassed the government's minimum expected price of Rs100 billion and a competing bid of Rs134 billion from the Lucky consortium.

B. Taxation and Revenue Enforcement

The Federal Board of Revenue (FBR) is undertaking significant measures to expand the tax base and enhance compliance.

  • Probe into Healthcare Sector: The FBR has launched a nationwide campaign to verify the incomes of doctors and hospitals by scrutinizing patient health bills.
    • Objective: To curb tax evasion and improve transparency by assessing real patient turnover and the range of services offered.
    • FBR Stance: Additional Commissioner Saleem ur Rehman Khan rejected allegations of harassment from the Pakistan Medical Association (PMA), stating that dedicated teams are observing clinic operations "in a professional and lawful manner" and that the department will not be "blackmailed into abandoning lawful enforcement."
  • Unimplemented FTO Recommendation: A key recommendation from the Federal Tax Ombudsman (FTO) against Inland Revenue and Customs officers remains unimplemented. The FTO had ordered an investigation into the alleged connivance of officials in the organized sale of non-custom paid (NCP) goods.
  • Tax Law Clarifications:
    • Section 149 (Salary Tax): Employers are legally required to deduct income tax from employee salaries at the source, calculated at the employee's average tax rate, to ensure regular collection and simplify compliance.
    • Section 148 (Advance Tax for Importers): The Collector of Customs is required to collect advance income tax on the value of imported goods at the time of clearance. This tax is generally treated as a minimum tax and is not adjustable against final tax liability.
  • Capital Gain Tax (CGT) Deadline: The National Clearing Company Pakistan Limited (NCCPL) has set December 31, 2025, as the final deadline for the collection of CGT from Clearing Members for transactions conducted in November 2025.

C. Technology and Digital Infrastructure Initiatives

  • 5G Spectrum Auction Approved: The Economic Coordination Committee (ECC) has approved recommendations for Pakistan’s largest-ever spectrum auction, which will enable the commercial rollout of 5G services.
    • Timeline: The government aims to complete the auction by the end of January or the first week of February.
    • Scope: Nearly 600 MHz of spectrum will be auctioned, in addition to the 274 MHz currently in use.
    • Objective: To address poor internet quality, reduce congestion, improve 3G/4G services, and align with the "Connect 2030" plan, which targets average internet speeds of up to 100 Mbps.
  • Prime Minister’s Cloud Program for Startups: The government, through Ignite – National Technology Fund, has launched this program to help tech startups adopt, optimize, and scale on cloud infrastructure. The program will offer tier-based cloud cost reimbursements of up to 60% and structured technical guidance.

D. Energy Sector Discoveries

Pakistan Petroleum Limited (PPL) has announced two significant gas discoveries in Sindh, enhancing the country's domestic energy prospects.

  • Unconventional Gas in Kashmore: PPL made a groundbreaking unconventional gas discovery at its exploratory well LAL X-1. This is the first discovery from the Lower Alabaster Formation in the region.
    • Flow Rate: The well flowed at a rate of 0.138 million standard cubic feet per day (MMscfd).
    • Significance: The discovery confirms hydrocarbon potential in tight limestone and shale formations, which require advanced extraction methods and could pave the way for a new hub for unconventional energy in Pakistan. PPL holds a 100% working interest in the lease.
  • Hydrocarbon Reserves in Khairpur: PPL also recently discovered hydrocarbon reserves from its exploratory well Sawan North Deep-1 ST-1.

E. Industrial and Corporate Highlights

  • Transworld: The company has become one of Pakistan's first and only providers to achieve Gold-tier status in the Google Verified Peering Provider (VPP) program, setting a new benchmark for network performance and reliability in the country.
  • Kohinoor Mills Limited: The textile exporter commenced commercial production at its new apparel division. The facility has an annual production capacity exceeding five million garments and aims to produce 5,000 garments per day per shift by June 30, 2026.
  • Wahdat Farms Pvt Ltd: The company is highlighted as a pioneer in Pakistan's packaged and enriched eggs segment, known for its Farm Fresh Eggs brand which includes Omega-3 enriched and vitamin-fortified products.
  • Punjab Sugar Mills Monitoring: The provincial government has introduced a 24/7 digital monitoring system for sugar mills to ensure real-time oversight of procurement, production, and distribution.

F. Domestic Market Performance (PSX)

The Pakistan Stock Exchange (PSX) experienced a volatile and range-bound session on December 23, 2025, with investor focus dominated by the PIA privatization.

  • KSE-100 Index: The benchmark index closed at 171,073.73, down 130.44 points (0.08%).
  • Trading Activity: Market participation was subdued, with total volume decreasing to 650.14 million shares and traded value declining to Rs28.26 billion, reflecting cautious sentiment during rollover week.
  • Volume Leader: PIA Holding Company was the volume leader with 45.03 million shares traded.

II. Global Market Overview and Economic Indicators

A. United States Market and Economic Data

  • Market Performance: U.S. stock indexes were mixed. The S&P 500 inched closer to a record high, buoyed by expectations of Federal Reserve rate cuts in the coming year.
  • Economic Growth: The U.S. economy grew at a 4.3% annualized rate in the third quarter, its fastest pace in two years and stronger than the 3.3% forecast. This was driven by robust consumer spending.
  • Investor Sentiment: The strong GDP data created a mixed reaction, fueling optimism about economic resilience while also stirring "concerns" that the Fed may need to delay rate cuts to manage accelerating inflation.

B. European Markets

European shares reached a new peak, driven primarily by the healthcare sector.

  • STOXX 600: The pan-European index added 0.4% to close at 588.81.
  • Key Driver: Shares of Danish drugmaker Novo Nordisk surged 9.2% after the U.S. FDA approved its weight-loss pill, giving it an edge over rival Eli Lilly.

C. Asia-Pacific Markets

  • Japan: The Topix index climbed 0.5%, supported by a retreat in domestic bond yields. However, the tech-heavy Nikkei ended flat due to persistent worries about AI-linked share valuations.
  • China & Hong Kong: Chinese and Hong Kong stocks rose, led by non-ferrous metals shares as gold prices hit record highs. The CSI300 Index ended 0.2% higher.
  • India: Benchmark shares settled flat amid thin year-end trading.
    • Monetary Policy: The Reserve Bank of India (RBI) unveiled measures to infuse approximately $32 billion of liquidity into the banking system through bond purchases and a dollar-rupee swap.
    • Market Pressure: Bankers are urging the RBI to intervene as a dollar glut and pressure in the non-deliverable forward market have pushed rupee forward premiums to multi-year highs.
  • Australia: The S&P/ASX 200 index rose 1.1% to a one-month high, extending a four-session rally driven by year-end positioning.
  • Sri Lanka: The CSE All Share index rose 0.13%, snapping a four-session losing streak. Sentiment was aided by news that India will provide a $450 million assistance package for cyclone relief.

D. Gulf Markets

Most Gulf stock markets closed higher, supported by stabilizing oil prices and hopes for U.S. Federal Reserve rate cuts in 2026. Saudi Arabia’s benchmark index gained 0.4%.

E. Commodity Market Trends

  • Oil: Prices were little changed, with Brent crude near $62 a barrel. The market is weighing the risk of Venezuelan supply disruptions due to U.S. sanctions against strong U.S. economic growth data.
  • Gold & Precious Metals: Spot gold and silver vaulted to all-time highs, driven by safe-haven demand. In Pakistan, the price of gold per tola increased by Rs8,500.
  • Natural Gas: U.S. natural gas futures rose 4%, boosted by record gas flows to LNG export plants.

III. Key International Corporate and Technology News

A. Media & Entertainment Sector

  • Paramount & Warner Bros. Discovery: A prominent Warner Bros. shareholder, Harris Oakmark, stated that Paramount's latest offer to acquire the company is "not sufficient." The investor indicated it would hold out for a greater incentive, viewing the current offer and a competing one from Netflix as a "toss-up." Paramount's bid of $108.4 billion was recently amended with a $40.4 billion personal guarantee from Oracle co-founder Larry Ellison.

B. Technology Sector Regulations and Innovations

  • WhatsApp Restrictions in Russia: WhatsApp complained of service restrictions in Russia, accusing authorities of attempting to "take away the right to private, end-to-end encrypted communication from over 100 million people." Russia's regulator, Roskomnadzor, stated that "WhatsApp continues to violate Russian law" and is being used to organize illicit activities.
  • Google's "Contextual Suggestions" for Android: Google is reportedly preparing to roll out a Pixel-exclusive feature, formerly known as Magic Cue, to all Android devices under the new name "Contextual Suggestions." The feature provides smart, timely recommendations based on user habits and routines, with all data processing and storage occurring on-device in a secure, encrypted space to ensure privacy.

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