Karachi: The KSE-100 index experienced a slight decline this week, closing at 170,765 points, down by 119 points. Investor sentiment remained cautious due to ongoing geopolitical uncertainty and domestic political developments. Despite the turbulence, domestic fuel prices saw a decrease, and discussions between Pakistan and the International Monetary Fund (IMF) offered potential economic adjustments.

According to JS Global, Brent crude oil prices averaged approximately $103.1 per barrel, marking a 2.2% drop from the previous week. Concurrently, domestic fuel prices for MS and HSD decreased by Rs1.51 per liter and Rs12.80 per liter respectively, following a series of weekly increases. On the international economic front, Pakistan initiated discussions with the IMF for the fourth review of the $7 billion Extended Fund Facility, which may lead to the release of a $1 billion tranche.

The Asian Development Bank (ADB) revised Pakistan's GDP growth forecast for fiscal year 2027 down to 3.7% from an earlier estimate of 4.5%. In the first two months of FY27, Pakistan secured $4.7 billion in foreign loans, while profit and dividend repatriation declined by 13.4% year-on-year to $557 million. In a significant domestic development, four out of five local refineries in Pakistan signed upgrade agreements with the government, facilitating an investment of approximately $6 billion over the next five years.

In the latest Pakistan Investment Bond auction, the government raised Rs181 billion, with yields rising by 20 to 75 basis points across various tenors. The State Bank of Pakistan's foreign exchange reserves remained stable at $21.4 billion.