Karachi: The KSE-100 Index experienced a decline this week, closing at 184,174 points, marking a 2.6% decrease from the previous week. Investor sentiment was affected by the Monetary Policy Committee's decision to maintain the current policy rate, contrary to expectations of a rate cut, as well as rising geopolitical tensions.

According to JS Global, the market showed some recovery in the final trading session after the government introduced relief measures for the industrial sector. These measures included a 300 basis points reduction in the Export Finance Scheme rate and a cut in power tariffs by Rs4.04 per unit. In a significant legal development, the Federal Constitutional Court upheld the legality of the super tax, overturning previous high court rulings. This decision is expected to bolster revenue collection, with the Federal Board of Revenue projected to generate over Rs300 billion in additional revenue for the fiscal year 2026.

In other economic developments, Pakistan has repaid more than Rs3.65 trillion in debt ahead of schedule over the past 14 months. The inflows of power circular debt also declined to Rs75 billion in the first half of FY26, reducing the cumulative stock to Rs1.68 trillion. Sectorally, the State Bank of Pakistan reduced the average Cash Reserve Ratio for commercial banks from 6% to 5% to boost credit expansion to the private sector. Meanwhile, the State Bank's reserves remained stable week-on-week at $16.1 billion.