Karachi: The KSE-100 Index experienced a significant drop, shedding 1,636 points to close at 158,465, with a trading volume of 950 million shares. This decline occurred amidst a backdrop of broader economic challenges facing the country. Key performers in terms of price change included SSOM, THALL, and JVDC, while TGL, TPLRF1, and PAEL were among the top decliners. Market activity was predominantly concentrated in the Technology, Power, and Investment sectors.

The downturn in the stock market comes as the World Bank raised concerns about slow reforms and a modest growth outlook for Pakistan. In an effort to address fiscal challenges, the government successfully raised Rs1.3 trillion through a T-bill and bond auction. Meanwhile, there are discussions underway about increasing petroleum product prices by up to Rs2.34 per litre starting November 1st.

In other developments, the United Arab Emirates has agreed to expedite work on date processing plants in Pakistan, while a gas pipeline faces a rupture risk due to pressure exceeding safe limits. The government is also actively working to resolve a dispute over the distribution of wheat seeds.

In the agricultural sector, Punjab and Sindh have reduced agriculture tax rates, a move initially implemented to satisfy International Monetary Fund conditions. Mills have secured agreements to import two million cotton bales, although rice exports have declined by 28% in the first quarter of 2025-26. Onion prices have doubled to Rs220 following a crisis in the tomato market.

The Pakistan Textile Council has urged the government to address critical challenges confronting the textile sector. Additionally, Pakistan has received its first-ever shipment of U.S. crude oil at the Balochistan coast, marking a significant development in the country’s energy imports.