Karachi: The KSE-100 Index recorded a fifth consecutive week of losses, dropping 4,045 points, or 2.4%, to close at 162,374. The decline comes amid ongoing domestic and geopolitical uncertainty, with average trading volumes decreasing by 13% to 393 million shares. However, the value traded saw a 7% increase to USD 69.7 million.

According to JS Global, the broader macroeconomic environment is also showing signs of strain. Pakistan's trade deficit widened by 21.1% to USD 9.33 billion in the first quarter of fiscal year 2027, as import growth outpaced exports. Large-Scale Manufacturing showed a marginal growth of 0.67% in August 2026, suggesting a slowdown in the industrial sector. The Pakistan Bureau of Statistics reported a slight downward revision in GDP growth for fiscal year 2026 to 3.65%, with the economy valued at USD 450.4 billion and per capita income at approximately USD 1,896.

In policy developments, Prime Minister Shehbaz Sharif approved a 1% sales tax on electric vehicles and significant import tax cuts under a proposed five-year auto policy, which are pending approval from the International Monetary Fund and the cabinet. These measures could potentially reduce vehicle prices. Additionally, profit rates on National Savings schemes have increased by an average of 24 to 40 basis points. Meanwhile, the State Bank of Pakistan's reserves remained stable week-on-week at around USD 21.5 billion. Brent crude oil prices also rose, closing above USD 114 per barrel.