Karachi: The KSE-100 Index experienced a turbulent week marked by geopolitical tensions between the United States and Iran, alongside domestic security concerns, concluding with a negligible change at 184,129 points.

According to JS Global, Pakistan's economic indicators presented a mixed picture. The Consumer Price Index (CPI) for January 2026 was recorded at 5.8%, maintaining the real interest rate at 4.7% and bringing the average inflation for the first seven months of the fiscal year to 5.24%. On the trade front, the country reported a trade deficit of $2.7 billion for January 2026, reflecting a 6.6% year-over-year decrease, attributed to a 3.7% rise in exports and a 1.4% decline in imports. Cumulatively, the trade deficit for the seven-month period of the fiscal year reached $22 billion, a 28.2% increase compared to the previous year.

In terms of external financing, the United Arab Emirates extended a $2 billion loan for one month at a 6.5% financing rate, providing an opportunity for further discussions on the facility's terms. Additionally, Pakistan sought a two-year extension from Saudi Arabia for its $1.2 billion oil financing facility.

In trade negotiations, Pakistan faced a setback as the United States reduced Indian tariffs from 50% to 18%, potentially impacting Pakistan's textile exports adversely. In the government securities market, the latest Treasury bill auction saw the government raise Rs823 billion, surpassing its target of Rs650 billion, with yields increasing by up to 39 basis points across various tenors.