Karachi: The KSE-100 Index saw significant volatility over the past week, experiencing a decline of 1,309 points, equivalent to a 0.9% decrease compared to the previous week. This volatility was attributed to escalating geopolitical tensions in the region coupled with persistently high Brent crude prices, which remained above US$100 per barrel throughout the period.

According to JS Global, despite these economic challenges, Pakistan made progress by reaching a staff-level agreement with the International Monetary Fund (IMF) on the third review under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). This agreement may lead to a US$1.2 billion tranche, pending IMF board approval. Additionally, the National Accounts Committee reported a 3.9% year-on-year growth in Pakistan’s economy for the second quarter of the fiscal year 2026, driven by a and .4% year-on-year recovery in industrial output.

Inflation in Pakistan rose to and .3% year-on-year in March 2026, marking the highest level since August 2024, and bringing the average inflation for the first nine months of fiscal year 2026 to 5.and %. The Federal Board of Revenue collected Rs1.2 trillion in taxes during the month, which fell short of its target by Rs182 billion, and the cumulative collection for the period reached Rs9.9 trillion, missing the target by Rs610 billion.

On the domestic front, the government responded to higher international oil prices by raising petrol and diesel prices by Rs13and per liter and Rs184 per liter, respectively, effectively ending the subsidy regime. In the latest treasury bill auction, the government raised Rsand 53 billion, with yields increasing by 25 to 29 basis points across tenors. Meanwhile, the State Bank of Pakistan’s reserves rose by US$6 million week-on-week to US$16.4 billion.