Karachi: The KSE-100 index experienced a momentous yet brief rise above the 80,000-point mark, ultimately facing selling pressure that restrained further gains by week’s end. Notable economic announcements, including a pending IMF program decision and central bank policy changes, influenced market movements, reflecting in various sectors from foreign investments to local auto sales.

According to JS Global, the benchmark index ended the week with a 0.6% increase despite the net sale of US$8.2 million in foreign investments. The IMF is poised to review Pakistan’s request for a US$7 billion Extended Fund Facility during its upcoming meeting in September 2024. In tandem, the State Bank of Pakistan has reduced the policy rate by 200 basis points to 17.5%, aiming to stimulate economic activity. Further fiscal measures are anticipated as the Federal Board of Revenue (FBR) plans to introduce a Rs650 billion mini-budget to address revenue shortfalls, likely including increased withholding tax on properties and a higher general sales tax on tractors, alongside stricter penalties for tax non-compliance.

Additionally, Pakistan’s forex reserves have seen an increment, reaching US$9.5 billion as of September 5, 2024, marking the highest level in over two years. Remittances from foreign workers nearly touched US$3 billion for August 2024, continuing a four-month trend of robust inflows. The automotive sector also reported a 13% year-over-year increase in 4-wheeler sales for August, although performance varied significantly among manufacturers.