Karachi: The KSE-100 Index experienced a significant decline, shedding 451 points to close at 178,472, with a trading volume of 801 million shares. The market saw notable performances in Sui Northern Gas Pipelines, Colgate-Palmolive, and Sui Southern Gas Company in terms of price change, while Pakistan Stock Exchange, International Steels Limited, and Synthetic Products Enterprises Limited were the top decliners. The day's trading activity was primarily focused on the technology, oil marketing companies, and property sectors.

According to Taurus Securities Limited, the decline in the KSE-100 Index comes amidst a backdrop of both international and domestic economic developments. On the international front, the joint statement by Pakistan and Qatar indicated that Iran and the United States have agreed to finalize a deal within the next 60 days, a move likely influenced by the recent partial lifting of U.S. sanctions on Iranian oil. Domestically, the National Assembly is set to approve the Finance Bill, which includes significant changes such as a 0.5% minimum tax for distributors and wholesalers of 14 goods, and a special excise duty on electric vehicles and luxury SUVs.

Additionally, the government has decided to end fuel subsidies following a sharp decline in global oil prices, which saw a 3% drop due to eased supply risks. Despite the fall in jet fuel prices, airfares are expected to remain high. Other notable developments include Pakistan's exports to China surging by 48.7% in the first five months of 2026, and the government borrowing approximately Rs4.9 trillion from banks. Industry responses have been mixed, with protests from the oil industry over pricing losses and concerns from the Lahore Chamber of Commerce and Industry regarding disproportionate tax hikes.