What happened on 26 Dec 2025?

Executive Summary

This document synthesizes critical developments across Pakistan's economy, global financial markets, and key technology sectors as of late December 2025. The most significant takeaway is the historic performance of the Pakistan Stock Exchange (PSX), with the KSE-100 index closing at a new all-time high of 172,400.73, driven by strong buying momentum and improved investor sentiment.

In parallel, Pakistan's regulatory and technology landscapes are evolving. The State Bank of Pakistan (SBP) has issued a comprehensive framework to manage climate-related financial risks, mandating compliance by June 2029. The government is also prioritizing technological advancement, with a stated focus on artificial intelligence (AI), robotics, and space innovation to modernize the economy. However, challenges persist in the digital payments ecosystem, with reliability concerns and regulatory bottlenecks hindering user confidence.

On the global stage, markets are exhibiting typical year-end trends. US stocks are hovering near record highs, buoyed by interest in AI companies and prospects of a "Santa Claus rally." Asian equities, particularly in Taiwan and South Korea, have seen strong weekly gains driven by the technology sector. In corporate developments, a major acquisition in the IT sector sees India’s Coforge acquiring Encora for $2.35 billion to enhance its AI capabilities. Meanwhile, commodity markets see oil prices steady but on track for their steepest annual decline since 2020, while gold and silver prices in Pakistan have risen in line with international trends.

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1. Pakistan Economic and Financial Overview

1.1. Pakistan Stock Exchange Hits Record High

The Pakistan Stock Exchange (PSX) experienced a landmark trading session on December 26, 2025, with the benchmark KSE-100 index surging to a new historic peak.

• Record Close: The KSE-100 index settled at 172,400.73 points, an increase of 1,570.51 points (0.92%).
• Intra-day High: The index reached an intra-day high of 172,582.95 points.
• Market Drivers: The rally was attributed to strong buying momentum, improved investor sentiment, the successful privatization of Pakistan International Airlines, and the SBP's recent 50 bps policy rate cut to 10.5%.
• Key Contributors: Major positive contributions came from Engro Holdings (ENGROH), Pakistan Petroleum Limited (PPL), Systems Limited (SYS), National Bank of Pakistan (NBP), and Maple Leaf Cement Factory (MLCF), which collectively added approximately 774 points to the index.
• Trading Volume & Value: Trading activity was robust, with the all-share index volume at 797.99 million shares and the value of shares traded rising to Rs38.06 billion.

1.2. State Bank of Pakistan (SBP) Initiatives and Data

The SBP has introduced a new regulatory framework and released key weekly data on the country's financial standing.

• Climate Risk Framework: The SBP issued the "Regulatory Framework for Effective Management of Climate-related Financial Risks" to address Pakistan's vulnerability to climate change. Financial institutions (FIs) are now required to integrate climate considerations into their governance, strategy, and risk management.
  • Compliance Deadline: Full compliance is required by June 30, 2029.
  • Interim Target: FIs must submit board-approved implementation plans to the SBP by September 30, 2026.
• Foreign Exchange Reserves: Pakistan's total net forex reserves declined modestly by $66 million during the week ending December 19, 2025.
  • Total Reserves: Stood at $21.023 billion.
  • SBP-held Reserves: Increased by 16 million to **15.903 billion**.
  • Commercial Bank Reserves: Decreased by 82 million to **5.12 billion**.
  • Analysts note that reserves remain stable above the $21 billion mark, supported by recent foreign inflows of around $1.2 billion.
• Pakistani Rupee Performance: The rupee strengthened by 3 paisa against the US dollar in the interbank market on December 26, closing at Rs280.17. The stability is attributed to improved economic indicators and steady remittance inflows.

1.3. Anti-Smuggling Operations

The Anti-Smuggling Organization (ASO) of Pakistan Customs Enforcement in Karachi conducted a successful intelligence-driven operation.

• Seizure: A large consignment of smuggled mobile phones was intercepted from a Mazda truck (registration NAF-859).
• Value: The 803 seized phones (including iPhone, Vivo, Google Pixel) are valued at approximately Rs62 million. The combined value of the phones and the truck is estimated at Rs87 million.
• Action: The driver and helper were taken into custody, and an FIR has been registered. The operation is part of the Federal Board of Revenue's (FBR) commitment to curbing illicit trade.

2. Pakistan Corporate and Industrial Developments

2.1. Corporate Appointments and Milestones

• Dewan Farooque Motors Limited (DFML): Appointed Ghazanfar Baber Siddiqi as Chairman of the Board and Waseem-ul-Haque Ansari as Chief Executive Officer, effective December 26, 2025.
• Blue-Ex Limited: Successfully credited its Initial Public Offering (IPO) shares into shareholders' Central Depository System (CDS) accounts as of December 24. This completes the final step of its migration from the PSX's GEM Board to the Main Board.
• K-Electric: Obtained a court stay order restraining Syed Asad Ali Shah from harassing the company or its officials. The order suspends a previous court directive and reinstates a stay in favor of K-Electric.

2.2. Strategic Initiatives and Investments

• Crescent Star Insurance Limited (CSIL): Announced plans to enter the digital and virtual assets space through a proposed joint venture. Its subsidiary, Crescent Star Technologies (CST), will partner with SG Power Limited (SGPL) to explore making an application to the Pakistan Virtual Assets Regulatory Authority (PVARA).
• Dynea Pakistan Limited: The Board of Directors approved the installation of a 2.5MW wind power project in Hub, Balochistan. This replaces an earlier plan for a 1.1MW facility and is intended to achieve better efficiency and support the company's sustainability objectives.

2.3. Defense and Infrastructure

• Pak-China Submarine Agreement: Zubair Tufail, President of the United Business Group (UBG), hailed the agreement under which China will provide 8 modern submarines to Pakistan. Four will be built in China, and four will be constructed at the Karachi Shipyard and Engineering Works under a technology transfer. The first Hangor-class submarine is expected to be inducted in 2026, with all eight delivered by 2028.
• Hyderabad Infrastructure Projects: A high-level meeting reviewed key uplift projects, including the Autobhan Road Phase-III. The Hyderabad SITE Association of Trade and Industry raised concerns about ensuring uninterrupted water supply to industries during construction and suggested removing the NTDC wall to improve traffic flow.
• Trade Promotion: The Secretary of the Trade Development Authority of Pakistan (TDAP), Sheryar Taj, visited Peshawar to review trade promotion activities and engage with the business community of Khyber Pakhtunkhwa.

3. Pakistan Technology and Digital Ecosystem

3.1. Government Vision for Technological Advancement

Federal Minister for Planning, Ahsan Iqbal, outlined Pakistan's strategy to align with rapid technological advancements.

• Key Focus Areas: Artificial intelligence (AI), robotics, space innovation, drone, and anti-drone engineering.
• Stated Goal: To transform Pakistan’s youth into a skilled technological workforce and make governance systems more transparent and data-driven.
• Planned Initiatives: The government plans to establish three Centers of Excellence, including a National Centre for Quantum Computing and a National Centre for Nanotechnology, and is developing a new "Silicon Valley" in Pakistan.

3.2. Challenges in the Digital Payments Ecosystem

Despite growing fintech adoption, Pakistan's digital payments ecosystem faces significant hurdles that undermine user confidence and business operations.

• Consumer Issues: Frequent card transaction failures, restrictions on international payments, low card acceptance, and security concerns.
• Business Challenges: Fragmented payment gateways, lengthy onboarding processes, and regulatory bottlenecks.
• Expert Analysis: U Microfinance Bank CEO Tooran Asif stated the challenges stem from "fragmented execution, & cautious risk frameworks." Analyst Jamil Arif noted that internet disruptions cost the economy an estimated $1.62 billion in 2024, and the system is bottlenecked by legacy banking software.

4. Global Market Performance (as of Dec 26-27, 2025)

Global stock markets showed varied performance in thin, holiday-season trading, with a generally positive outlook heading into the new year.

Market/Index	Performance Highlights	Key Drivers
US Stocks	S&P 500 and Dow hovered near all-time highs. Nasdaq saw modest gains. On track for a third straight year of gains.	Resilient economic data, appetite for AI stocks (e.g., Nvidia), and anticipation of a "Santa Claus rally."
UK (FTSE 100)	Closed lower in a shortened Christmas Eve session.	Quiet trading with investors trimming positions in pharma stocks like AstraZeneca and GSK.
China (Shanghai)	Ended a seven-day rising streak with a slight dip but booked its best week in two months.	Aided by a strengthening yuan. Tech stocks saw profit-taking.
Japan (Topix)	Reached a record intraday high of 3,436.75. Nikkei was set for a 26% annual jump.	Easing concerns about national debt and a rebound in Japanese government bonds.
Asian Equities	Set for their strongest week in over a month. Taiwan's index hit a record high; South Korea's KOSPI at a two-week peak.	A robust rally in AI-related technology and chipmaker stocks.
India (Nifty/Sensex)	Eased on Friday, trimming weekly gains.	Profit-taking near record highs, thin year-end trading volumes, and persistent foreign selling.
UAE	Slipped on Friday but ended the week higher.	Rebound in oil prices provided support, but thin trading volumes persisted.
Vietnam	Stocks fell 2%, led by a 7% decline in Vingroup and its affiliates.	Vingroup announced it would withdraw its investment proposal for a major high-speed rail project.

5. Global Technology and Corporate News

5.1. Major Corporate Acquisition

• Coforge to Acquire Encora: Indian IT services firm Coforge announced it will acquire US-based AI firm Encora at an enterprise value of $2.35 billion. The deal aims to boost Coforge's in-house AI capabilities and expand its presence in the U.S. and Latin America.

5.2. New Product Leaks and Launches

• Samsung Galaxy A07 5G: Leaked certification details from Brazil suggest the upcoming affordable phone will feature a larger 6,000mAh battery. It is rumored to be powered by a MediaTek Dimensity 6300 chipset.
• Honor Win Series: Honor officially launched its gaming-focused Honor Win and Win RT smartphones in China. Key features include a massive 10,000mAh battery, 100W fast charging, a Snapdragon 8 Elite Gen 5 processor, a 185Hz OLED display, and a built-in active cooling fan.
• Apple iPhone Air 2: A new rumor suggests the device may launch earlier than expected, in September 2026. Expected upgrades include a dual rear camera, a larger battery, and vapor chamber cooling.

6. Commodities and Energy Markets

6.1. Oil Prices

• Oil prices remained steady on December 26, with Brent crude at 62.08/barrel** and WTI crude at **58.28/barrel.
• Investors are weighing potential supply risks from geopolitical tensions against concerns of a market surplus in 2026 due to rising output from OPEC+ and non-OPEC states.
• Oil prices are on track for their steepest annual decline since 2020, down 17-19% compared to the end of 2024.

6.2. Pakistan Gold and Silver Prices (December 26, 2025)

Precious metal prices in Pakistan rose, aligning with gains in international markets amid demand for safe-haven assets.

Commodity	Rate	Change
Gold 24-karat (per tola)	Rs473,362	+Rs500
Gold 24-karat (per 10g)	Rs405,831	+Rs429
Silver 24-karat (per tola)	Rs7,945	+Rs240
Silver 24-karat (per 10g)	Rs6,811	+Rs206
Gold (International)	$4,510/ounce	+$5
Silver (International)	$74.70/ounce	+$2.40

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7. Key Data Tables

7.1. Open Market Forex Rates (as of Dec 27, 2025)

Currency	Buying (PKR)	Selling (PKR)
US Dollar	281	283
UK Pound Sterling	378.75	382.75
Euro	330.5	334
U.A.E Dirham	76.65	77.50
Saudi Riyal	74.85	75.5
Canadian Dollar	203.5	208
Australian Dollar	187.5	191
China Yuan	39.39	39.79
Japanese Yen	1.7850	1.8850

7.2. Inter-Bank Forex Rates (as of Dec 27, 2025)

Currency	Buying (PKR)	Selling (PKR)
US Dollar	280.10	280.60
UK Pound Sterling	378.42	379.09
Euro	330.13	330.72
Saudi Riyal	74.67	74.80
Japanese Yen	1.7932	1.7964