Karachi: The KSE-100 Index experienced a mild decline this week, closing at 148,618 points, marking a 0.6% decrease from the previous week. The average daily turnover, however, saw an increase of 14%, reaching 898 million shares. A notable trend was the continued net selling by foreign investors, resulting in an outflow of $43 million, which was largely balanced by local buying, particularly from mutual funds.

In a significant development for Pakistan's fiscal landscape, the Asian Development Bank approved an $800 million loan and guarantee program aimed at enhancing fiscal sustainability. Additionally, the country secured $649.53 million in foreign assistance during July 2025, showing a 59% increase compared to the previous year, sourced from both bilateral and multilateral loans and grants.

The repatriation of profits and dividends saw a substantial rise, hitting $244 million in July 2025, a 75% increase year-on-year, mainly driven by the power sector. The State Bank of Pakistan reported net dollar purchases of $7.8 billion from the currency market between June 2024 and May 2025.

In the energy sector, the government has decided to settle Rs100 billion of outstanding dues to Chinese Independent Power Producers (IPPs) ahead of the Prime Minister's forthcoming visit to China. In regulatory news, the State Bank of Pakistan halted proposals to legalize digital currencies, citing the absence of a regulatory framework and concerns related to the Financial Action Task Force.

Meanwhile, the State Bank's reserves saw a slight uptick of $18 million, bringing the total to $14.274 billion, a 0.1% increase week-on-week.