Karachi: The KSE-100 Index experienced a sharp decline, losing 2,537 points to close at 180,513, with a substantial 869 million shares traded. The most notable price increases were observed in PIOC, RMPL, and PIBTL, while HUMNL, IBFL, and EFERT were the top decliners. Trading activity was predominantly focused in the Power, Technology, and Investment Banks sectors.

According to Taurus Securities Limited, the market's downturn came amidst a backdrop of important developments in both local and international economic and political arenas. The Foreign Office confirmed that the Prime Minister and Deputy Prime Minister will attend the inaugural session of Trump's peace board. Furthermore, at an upcoming Bank of Pakistan meeting, Trump is expected to announce a new Gaza funding plan and the deployment of ISF troops.

In financial developments, the UAE has extended a $2 billion lifeline to Pakistan ahead of crucial IMF discussions, reinforcing Pakistan's role as a key U.S. partner in South Asia, as noted by Congress. On the domestic front, banks have reduced the export refinance rate to 4.5%, and the Lahore High Court has limited the Federal Board of Revenue's suo motu powers. Meanwhile, the State Bank of Pakistan reported an increase in foreign reserves to $16.18 billion.

The government is considering debt restructuring as a strategy to lower power tariffs, while changes in net-metering are being characterized as efforts towards fair pricing rather than being anti-solar. Additionally, two major initiatives have been proposed by the ministry, and over Rs1.4 trillion in agricultural credit has been disbursed by banks. The government is also considering imposing a cess on fertilizer companies and introducing e-rickshaws and bikes under the PAVE scheme.