Karachi: The KSE-100 index closed the week with a significant drop, falling 2,938 points, or 1.6%, to settle at 177,166 points. The decline was attributed to heightened political and geopolitical tensions, which also contributed to a surge in Brent crude prices by 8% to approximately $94 per barrel.

According to JS Global, the domestic petrol prices increased by Rs12.35 per liter to Rs337.78 per liter, while high-speed diesel (HSD) prices decreased by Rs19.25 per liter to Rs364.70 per liter. The decrease in diesel prices followed the government's decision to cap the diesel crack spread at $41.5 per barrel, compared to the international margin of approximately $68 per barrel, resulting in a reduction of about Rs32.63 per liter.

In a separate development, the Petroleum Division proposed a Rs1.49 trillion gas circular debt settlement plan to the Cabinet Committee on Energy, addressing a total gas circular debt of Rs3.6 trillion. The plan includes measures such as Rs540 billion in dividends from Oil and Gas Development Company, Pakistan Petroleum Limited, and Government Holdings Private Limited, a Rs5 per liter additional petroleum levy, and savings from reduced LNG cargoes.

On the macroeconomic front, Pakistan reported a current account deficit of $328 million, a reduction from $814 million in June 2026 and $529 million in July 2025. Additionally, large-scale manufacturing output grew by 1.8% year-on-year in June 2026, leading to a fiscal year 2026 growth of 5% year-on-year. In the Treasury bill auction, the State Bank of Pakistan raised Rs518 billion against a Rs500 billion target, with yields increasing by around 10 basis points across tenors. The State Bank's foreign exchange reserves remained stable at $17.08 billion.