*Chase Securities* *What You Should Know Today* *10th February, 2025* *Key Headlines* 1. H1 budget deficit 1.2pc of GDP 2. LNG deal with Qatar open to renegotiation next year 3. Three key IMF conditions met 4. Govt likely to enhance petroleum levy to achieve Rs1281b target 5. PM vows more cuts in power tariffs 6. Pakistan requests rescheduling of $3.4b Chinese debt *Market Outlook: Search For Triggers* The market continues to consolidate as investors await key triggers to drive bullish sentiment. However, important events are on the horizon, including the MSCI review scheduled for tomorrow, where Pakistan’s weightage is expected to increase. Additionally, auto sales data for January 2025 will be released, with expectations of strong growth compared to previous months. On the macroeconomic front, Pakistan has successfully met three out of five major IMF fiscal conditions, surpassing the primary budget surplus target (Rs3.6 trillion vs. Rs2.9 trillion) and exceeding both the provincial cash surplus (Rs776 billion vs. Rs750 billion) and independent revenue collection (Rs442 billion vs. Rs376 billion) targets. However, the Federal Board of Revenue (FBR) missed two key targets: overall tax collection fell short by Rs384 billion against the Rs6 trillion goal, and the Tajir Dost Scheme performed dismally, collecting less than Rs2 million instead of Rs23.4 billion. The fiscal surplus was largely driven by a one-time Rs2.5 trillion profit from the State Bank of Pakistan (SBP). Meanwhile, federal expenditures surged 22% to Rs8.2 trillion, primarily due to rising interest payments of Rs5.1 trillion. The upcoming IMF review in March is crucial for securing the next $1 billion loan tranche, though there appear to be no major hurdles to its approval. With a decent market correction already in place, the combination of upcoming triggers and a successful IMF review could provide a strong catalyst for market performance. We see the current environment as an opportunity for investors to accumulate value stocks. E&Ps and OMCs have undergone meaningful corrections, while the cement, auto, and auto parts sectors are expected to remain in the spotlight in the near term. *Top Picks* OGDC, PPL, PSO, UBL, MEBL, BAFL, FFC, FATIMA, CHCC, MLCF, DGKC, SAZEW, GHNI, ATLH, AGTL, INDU, ISL, ASL, PSX, LOADS, COLG, GCIL, PAKT, IMAGE, SPEL, HUMNL, TGL, GHGL *Important Board Meetings Today* EPCL, BCL, Imperial- Corporate Results SYM, Gatron- Other Matters *Corporate Briefing* N/A *Start of Ex-Price today* BWHL- 60% Dividend *Last Day of Entitlement* N/A *Other Key Events Today* N/A *Results to be Announced at Market Open* EFERT and STCL Corporate Results