Karachi: The KSE-100 index experienced a stable week, closing slightly higher at 139,207, marking a 0.4% increase from the previous week. Average daily trading volume, however, decreased by 17% to 635 million shares.

Throughout the week, investor sentiment was bolstered by S and P Global's decision to upgrade Pakistan's sovereign credit rating from CCC+ to B-. This upgrade spurred a rally in long-dated dollar bonds, driving them to three-year highs and enhancing market confidence.

The government is actively working on strategies to resolve the Rs2.8 trillion gas circular debt without imposing additional costs on consumers. Several plans are currently under consideration to address this issue.

The State Bank of Pakistan (SBP) has published an advance calendar for its Monetary Policy Committee meetings for the fiscal year 2026, with the next session scheduled for July 30, 2025.

In financial developments, Pakistan secured $12.4 billion in foreign loans during the fiscal year 2025, an increase of $2.6 billion from the previous year. The repatriation of profits and dividends remained steady at approximately $2.2 billion, with the power sector experiencing the largest outflow of $399 million, a 62% year-on-year increase.

The SBP's recent treasury bill auction raised Rs424 billion, surpassing the target of Rs200 billion, while yields decreased by 10 to 39 basis points across different tenors. Nevertheless, SBP's foreign reserves saw a weekly decline of $69 million, settling at $14.45 billion, largely due to external debt repayments.