Karachi: The KSE-100 index saw limited movement this week, ultimately closing at 180,104 points, a decrease of 1,325 points, or 0.7% from the previous week, amid uncertainty over the extension of the 60-day US-Iran ceasefire, which is set to expire on August 17. The uncertainty around key maritime routes, such as the Strait of Hormuz and the Red Sea, contributed to a 6% weekly increase in Brent crude prices, reaching approximately $87 per barrel.

According to JS Global, in a significant regional development, Pakistan, Saudi Arabia, and Türkiye have signed the Makkah Joint Defence Agreement, also known as the Makkah Accord. On the domestic fiscal front, Pakistan has reported a narrowed fiscal deficit of Rs3.3 trillion in FY26, which is equivalent to 2.6% of GDP, marking the lowest level in 22 years. Additionally, Pakistan is celebrating the third consecutive year of a primary surplus, which stands at 2.9%.

Meanwhile, the prices of Motor Spirit (MS) and High-Speed Diesel (HSD) remained relatively stable at Rs324.98 per liter and Rs382.79 per liter, respectively. The Petroleum Minister announced that the government anticipates signing formal agreements worth $5 billion for refinery upgrades as early as next month. In terms of macroeconomic indicators, July remittances increased by 13% year-on-year and 4.5% month-on-month, totaling $3.6 billion.

Furthermore, an International Monetary Fund (IMF) staff mission is scheduled to visit Pakistan next month to conduct discussions on the fourth review under the Extended Fund Facility (EFF) and the third review under the Resilience and Sustainability Facility (RSF). If approved, these discussions could unlock approximately $1.2 billion under the program.