Karachi: The KSE-100 Index demonstrated a bullish momentum throughout the week, peaking at 146,813 points before a decline on Friday led to a closing figure of 145,383 points, marking a 3% increase compared to the previous week. The average daily turnover rose by 16% to 653 million shares per day.

Investor sentiment was buoyed by the U.S. decision to impose higher tariffs on Indian goods, strengthening confidence in Pakistan's export-oriented sectors. Concurrently, the government announced progress in the power sector, reducing circular debt by Rs780 billion to Rs1.6 trillion. A five-year privatization roadmap was also unveiled, targeting the privatization of 24 companies in three phases, with Pakistan International Airlines (PIA) among the first 10 companies slated for privatization.

The State Bank of Pakistan (SBP) reported a 7.4% year-over-year increase in remittance inflows, totaling US$3.2 billion. However, despite a 33.7% year-over-year rise in textile exports to US$1.69 billion, the overall trade deficit widened by 44% year-over-year, reaching US$2.7 billion due to higher imports.

In the latest T-bill auction, the SBP raised Rs386 billion against a target of Rs400 billion, with yields climbing by 5 to 30 basis points across various tenors. SBP's reserves fell by US$72 million week-over-week to US$14.2 billion, primarily due to external debt repayments.