Karachi: The KSE-100 Index suffered a significant loss of 1,521 points, closing at 161,282, with a trading volume of 898 million shares. The drop underscores ongoing economic challenges as the market faces a surge in the trade deficit and potential policy shifts ahead of an International Monetary Fund board meeting.

The most notable price gains were seen in stocks such as DHPL, PSEL, and KEL, while TRG, KTML, and SSGC were among the top decliners. Market activity was primarily concentrated in sectors like technology, investment companies, and oil marketing companies.

In related economic developments, the trade deficit surged by 56 percent in October, heightening concerns over the country's economic stability. The government has announced plans to release a key report in preparation for an upcoming IMF board meeting, which could influence economic strategies moving forward.

Further compounding the economic landscape, the government is being urged to review the power tariff policy for Karachi and consider the privatization of more power plants. Additionally, foreign direct investment is facing challenges, highlighted by a Qatari group's intention to divest its stake in a Port Qasim plant.

In the financial sector, the State Bank of Pakistan reported that the banking sector exceeded its agricultural loan target, disbursing Rs2.58 trillion in the fiscal year 2025. Meanwhile, oil sales saw a modest increase of 4 percent in the first four months of the fiscal year 2026.

As the government navigates these economic hurdles, stakeholders from various industries are calling for strategic policy reviews, including a push from electric vehicle bike manufacturers to revisit a sales tax hike decision. The Securities and Exchange Commission of Pakistan has approved a new book-building mechanism for initial public offerings, reflecting ongoing efforts to stabilize and invigorate the market.