Karachi: The KSE-100 Index experienced a decline of 2% over the past week, closing at 170,672 points, as ongoing geopolitical tensions between the United States and Iran weighed heavily on investor sentiment. The uncertainty surrounding the ceasefire negotiations contributed to the market's underperformance, while the continued closure of the Strait of Hormuz pushed Brent crude prices above $100 per barrel.

According to JS Global, the Pakistani government is engaged in discussions with the International Monetary Fund (IMF), with reports suggesting the potential introduction of 11 new conditions under their program. The government has also committed to adopting a stricter fiscal stance for FY27, aiming for a primary surplus of Rs2.8 trillion and tax revenues of Rs15.56 trillion. Additionally, Pakistan faces a significant power shortfall exceeding 11,000 megawatts due to a lack of RLNG supply, prompting the government to issue an urgent tender for LNG cargoes under amended PPRA rules.

In financial developments, the government has repaid $1 billion to the United Arab Emirates, bringing total repayments to $3.4 billion, while securing $1 billion in fresh inflows from Saudi Arabia, bringing the Kingdom's total support to $3 billion. This is in addition to the rollover of its existing $5 billion deposit. The government also successfully raised $750 million from international capital markets, marking its return after a four-year absence. The State Bank of Pakistan's reserves stood at $15.1 billion at the end of the week.