Karachi: The KSE-100 Index experienced a significant decline, shedding 1,789 points to close at 182,340, with a trading volume of 928 million shares. The session saw strong performance in stocks such as AGP, KEL, and SAZEW, while AKBL, LOTCHEM, and FABL were the top decliners. Trading activity was predominantly focused in the power, banking, and technology sectors.

According to Taurus Securities Limited, the market's downturn comes amid ongoing discussions between Pakistan and the International Monetary Fund (IMF) regarding the third review of their programme and budget outlines. The country's commitment to achieving a 1.6 percent of GDP surplus remains a focal point. Meanwhile, the State Bank of Pakistan has highlighted vulnerabilities in the economic outlook, although it noted a path of stabilization and recovery from July through January of FY26.

In related developments, Pakistan's economic landscape is also impacted by climate-related damages, costing nearly 1 percent of GDP annually, and ongoing efforts with Iran to boost bilateral trade. Additionally, the finance minister has noted active Saudi investment pipelines as reforms advance, potentially offering financial relief through renegotiations with Independent Power Producers (IPPs).