Karachi: The KSE-100 Index experienced a volatile week, initially rising to an intraday high of 168,414 points following a ceasefire agreement between Pakistan and Afghanistan. However, the index closed the week at 163,304 points, reflecting a minor weekly decline of 0.3%.

Economic indicators presented a mixed picture, with the International Monetary Fund warning about the potential impact of recent floods on Pakistan's growth, inflation, and current account. In September 2025, the country recorded a current account surplus of $110 million, reducing the first quarter fiscal year 2026 deficit to $594 million.

Profit repatriation showed significant growth, increasing 85.8% year-on-year to $752 million in the first quarter of fiscal year 2026. Conversely, foreign direct investment saw a decline of 34% year-on-year, amounting to $569 million.

On the domestic front, the federal government is reportedly working on a three-year power tariff relief package. This initiative aims to lower electricity rates for agricultural and industrial consumers from the current Rs38/kWh and Rs34/kWh to Rs22.98/kWh.

Meanwhile, the technology sector saw a positive trend, with IT exports rising 25% year-on-year to $366 million in September 2025. This contributed to a total of approximately $1.1 billion in exports for the first quarter of fiscal year 2026, marking a 21% year-on-year increase.

In related developments, the State Bank of Pakistan's foreign exchange reserves saw a slight increase of $14 million week-on-week, totaling $14.55 billion. These financial developments present a complex landscape for Pakistan's economic outlook in the coming months.