Karachi: The KSE-100 index experienced a slight increase over the past week, closing at 177,696, marking a 530-point rise or a 0.3% gain from the previous week. This development occurred amid ongoing international tensions, specifically the unresolved US-Iran conflict impacting the Strait of Hormuz, which contributed to a 5% decrease in Brent crude prices to approximately $89.7 per barrel. Domestically, fuel prices saw an uptick, with petrol and high-speed diesel prices increasing to Rs342.60 and Rs371.61 per liter, respectively.

According to JS Global, the week also saw notable changes on the macroeconomic front. Moody's Investors Service upgraded Pakistan's sovereign credit rating from Caa1 to B3, citing reduced external vulnerabilities and an improved risk profile. Additionally, an International Monetary Fund (IMF) mission is anticipated next month for the fourth review of the Extended Fund Facility (EFF). In line with IMF requirements, the Cabinet Committee on Privatisation (CCoP) approved a restructuring plan for three state-owned electricity distribution companies (DISCOs). The Ministry of Privatisation has also announced plans to privatise two major DISCOs, LESCO and MEPCO, in their current form.

Moreover, the Petroleum Division is implementing significant changes to the gas tariff structure, moving from a 12-slab system to a single rate, with targeted subsidies now based strictly on household income. Meanwhile, foreign exchange reserves held by the State Bank of Pakistan remained stable at $17.1 billion for the week.