Karachi: The KSE-100 Index sustained its upward trajectory this week, with a 4% increase, closing at 173,939 points. This bullish trend was attributed to reduced geopolitical tensions as Pakistan engaged in diplomatic efforts to de-escalate regional issues. Additionally, the country's current account showed a surplus due to increased remittances and a better trade balance.

According to JS Global, Pakistan's current account posted a surplus of US$1.07 billion in March 2026, bringing the cumulative surplus for the first nine months of the fiscal year to US$8 million. Despite this, the trade deficit widened to US$2.4 billion, marking a 9% year-on-year increase, as exports fell by 8% while imports rose slightly. Over the same period, the trade gap expanded by 26% year-on-year to US$23.5 billion, highlighting ongoing challenges in the external economic position.

Foreign exchange reserves held by the State Bank of Pakistan decreased by US$1.3 billion to US$15.1 billion due to a Eurobond repayment. Nonetheless, inflows were bolstered by a US$2 billion deposit from Saudi Arabia. Domestically, the large-scale manufacturing sector grew by 6.45% year-on-year in February 2026, with an overall growth of 5.9% for the first eight months of the fiscal year. In the government's latest T-bill auction, Rs1.5 trillion was raised, with yields increasing across various tenors.