25/08/2026
What You Should Know Today
August 25th, 2026
Key Headlines
1. IM FY2026-27; USD763.03m received on account of foreign aid.
2. Moody’s upgrades Pakistan’s sovereign credit rating to B3.
3. Pak freelancers’ earnings may reach USD2.5bn in current fiscal year.
Market Outlook: Improved Sovereign Rating to Support Market Sentiment
Pakistan’s sovereign credit profile received a boost as Moody’s upgraded the country’s rating to B3 from Caa1, while maintaining a stable outlook. The upgrade reflects expectations that improving governance and external-sector conditions will help sustain recent gains in Pakistan’s external position and strengthen fiscal metrics. The improved rating could also help put Pakistan back on the radar of foreign investors and gradually improve investor sentiment toward domestic assets.
Meanwhile, Pakistan’s diplomatic efforts to de-escalate the US-Iran conflict remain a key external factor for markets. The visit of CDF and COAS Field Marshal Syed Asim Munir to Tehran focused on preventing further escalation, facilitating the reopening of the Strait of Hormuz and advancing a negotiated settlement. Any progress on these fronts would be particularly positive for Pakistan given the implications for global oil prices, inflation and the country’s external account. Oil prices meanwhile retreated over 2% on Monday, with Brent settling around USD 92/bbl.
On the local front, yesterday’s excitement in the energy sector following discussions around the IMF-approved dividend plug-in mechanism was partly offset by profit-taking in refinery stocks amid concerns over weaker-than-expected quarterly results. However, the formal designation of Inter State Gas Systems (ISGS) as the implementation entity for the amended brownfield refinery policy is a significant positive, as it indicates that the USD 5bn refinery upgrade programme remains on track and implementation agreements could be signed soon. We expect the overall market tone to remain positive today, supported by Moody’s rating upgrade, softer international oil prices and improving clarity on refinery modernisation. Continued diplomatic efforts toward de-escalation in the Middle East could provide an additional catalyst, while energy stocks are likely to remain in focus. Selective buying across index-heavy and fundamentally strong names is expected to support PSX performance.
Top Picks
OGDC, PPL, PSO, UBL, MEBL, FFC, FATIMA, CHCC, MLCF, DGKC, SAZEW, GHNI, ATLH, INDU, ISL, ASL, PSX, PTC, GCIL, PAKT, AGIL, GGL, CEPB, SRVI, PTL
Important Board Meetings Today
Hascol Petroleum Limited, GlaxoSmithKline Pakistan, National Refinery Limited, JS Bank Limited, PIA Holding Company Limited
Corporate Briefing
Hinopak Motors Ltd, Waves Home Appliances
Start of Ex-Price today
Waves Home Appliances Limited - 56% (R)
Last Day of Entitlement
Jubilee Life Insurance Company Limited - 50% (B) - 30%(i)
Other Key Events Today
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Results to be Announced at Market Open
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