Karachi: The KSE-100 Index experienced its fourth consecutive week of decline, losing 670 points (a 0.4% decrease week-on-week) to close at 166,419. This downturn comes amidst ongoing domestic and geopolitical uncertainties impacting the market.

According to JS Global, the decline in the index occurred alongside an increase in Brent crude prices, which closed the week above US$106 per barrel, compared to the previous week's average of approximately US$102 per barrel. Domestically, while petrol prices dropped by Rs8.73 per liter to Rs390.23 per liter, high-speed diesel (HSD) prices saw an increase of Rs1.24 per liter, reaching Rs396.96 per liter.

On the macroeconomic front, September 2026 remittances rose by 13% year-on-year to US$3.59 billion, contributing to a 14% year-on-year increase in first-quarter fiscal year 2027 inflows to US$10.86 billion. The Federal Board of Revenue (FBR) surpassed its tax collection target for the first quarter of fiscal year 2027 by Rs30.5 billion, achieving Rs3,083.5 billion. Meanwhile, large-scale manufacturing registered a year-on-year growth of 0.66% in August 2026, although it declined by 5% month-on-month.

The International Monetary Fund (IMF) has revised its fiscal year 2027 inflation forecast for Pakistan to 9.9%, exceeding the government's target of 8.2%, while maintaining its GDP growth projection at 3.5%, below the official expectation of 4%. Separately, Pakistan is seeking a 15-year extension of its US$1.2 billion annual deferred oil facility from the Saudi Fund for Development.

In the latest Treasury bill auction, the government raised Rs660 billion against a target of Rs550 billion, with yields increasing by one basis point on the three-month and six-month tenors, while declining by 18 basis points and five basis points on the one-month and 12-month tenors, respectively. The State Bank of Pakistan's reserves remained stable week-on-week at approximately US$21.5 billion.