Karachi: The KSE-100 index closed the week with a 0.4% loss at 78,488 points, influenced by ongoing security concerns and the stock market’s roll-over period. The trading volumes showed a slight increase compared to the previous week.

According to JS Global, the subdued market activity was partly offset by positive external developments, including Moody’s upgrade of Pakistan’s credit rating to Caa2. This upgrade reflects improvements in the macroeconomic environment and government liquidity. Despite Pakistan’s absence from the upcoming IMF executive board meetings until September 4, expectations are set for the approval of the Extended Fund Facility in the near future.

The Finance Minister has sought a US$1.2 billion loan from Saudi Arabia to help manage the country’s external financing needs and ensure the smooth progression of the IMF’s Extended Fund Facility approval. Additionally, Saudi Arabia has expressed interest in acquiring a 15% stake in the Reko Diq mining project, signaling potential international investment in Pakistan’s mining sector.

The State Bank of Pakistan’s reserves saw an increment of US$112 million this week, totaling US$9.4 billion. However, the country faced a significant monthly drop in repatriation, with figures for July showing a 67% decrease to US$139 million.