Karachi: The KSE-100 Index closed the year at a historic high of 172,400, marking a 0.6% increase week-on-week despite a 25% drop in average daily turnover. The surge was fueled by a significant privatization milestone as the government auctioned a 75% stake in Pakistan International Airlines Ltd to a consortium led by AHCL for Rs135 billion. This transaction, the first major privatization in two decades, fulfills a crucial requirement of the International Monetary Fund program.

External financial support for Pakistan remained robust. The World Bank approved US$700 million to bolster macroeconomic stability, while the Asian Development Bank signed agreements for financing initiatives amounting to US$730 million. Over the first five months of the fiscal year 2026, Pakistan received approximately US$3 billion in foreign assistance.

Private sector lending showed substantial growth, as confirmed by the Pakistan Banks Association, with lending reaching Rs1.5 trillion to date in FY26. This development has contributed to enhanced liquidity in the market.

In a recent treasury bill auction, the government successfully raised Rs911 billion, surpassing the target of Rs471 billion, with yields decreasing by 36 to 78 basis points across various tenors.

Additionally, the Economic Coordination Committee has approved plans to auction the 5G spectrum by late January or early February 2026. In another positive sign, the State Bank of Pakistan's foreign exchange reserves increased by US$16 million to US$15.9 billion, reflecting a minor weekly uptick of 0.1%.