Karachi: The KSE-100 Index saw a significant downturn, shedding 1,133 points to close at 184,410, with a trading volume of 1,027 million shares. The market witnessed notable performance in stocks like AICL, FFL, and KTML in terms of price change, while PTC, AGP, and SSOM emerged as the top decliners. The day's trading activity was primarily concentrated in the Food, Technology, and Banking sectors.

In related economic updates, the Pakistan government plans to establish a 6,000-acre Export Processing Zone on the land of Pakistan Steel Mills as part of its economic reform agenda. Meanwhile, the International Monetary Fund (IMF) has hailed the sale of Pakistan International Airlines (PIA) as a significant milestone for the country's economic reforms.

However, challenges persist as the weekly inflation surged by 3.2 percent, and dollar inflows from exchangers have dipped. The credit to the private sector also fell sharply by 79 percent to Rs395 billion in the first half of the fiscal year 2026.

On the trade front, Pakistan and Indonesia have signed a Memorandum of Understanding (MoU) for a joint trade committee, and the government has expressed its ambition to transform Pakistan into an IT hub. Additionally, a spectrum auction is scheduled for February 26, which may impact the telecommunications sector.

Despite these mixed indicators, the government aims to exit the IMF program this year, with expectations of a 3.5 percent economic growth by 2026. As part of its privatisation drive, the government has scrapped the House Building Finance Corporation Ltd (HBFCL) deal and restarted the process for Roosevelt Hotel.

Lastly, Pakistan is reportedly nearing a $1.5 billion deal to supply weapons and jets to Sudan, according to sources, as part of its broader economic and defense strategy.