Karachi: The KSE-100 Index experienced an upward trend over the shortened trading week, increasing by 0.36% or 649 points, as positive developments in US-Iran relations bolstered investor sentiment. The index's performance was supported by an agreement between the US and Iran on a 60-day roadmap, aimed at reaching a final agreement and ceasing military activities in Lebanon. Concurrently, a decrease in Brent crude oil prices to $76 per barrel led to a significant reduction in local fuel prices.

According to JS Global, the Pakistani government announced a reduction in petrol and diesel prices by Rs74 and Rs67 per liter, respectively. This decrease coincided with the withdrawal of a fuel subsidy scheme for bikers, farmers, and transporters, as regional tensions showed signs of easing. Additionally, the National Assembly approved the fiscal year 2027 budget, featuring the abolition of the Super Tax for export-oriented companies with exports making up at least 80% of their turnover.

In other economic developments, the government successfully raised Rs1.15 trillion in the latest treasury bill auction, with declining yields across all tenors by 39 to 115 basis points. Meanwhile, government borrowing from scheduled banks increased to Rs4.9 trillion from July 2025 to June 12, 2026, compared to Rs3.7 trillion during the same period last year.