Karachi: The KSE-100 Index experienced a significant drop, losing 1,238 points to close at 167,752, as economic pressures persist. A total of 1,271 million shares were traded, with notable performances in AICL, PTC, and BOP, while SSOM, UPFL, and YOUW saw declines. The trading activity was largely focused on the banking, technology, and refinery sectors.

The market downturn comes amid broader economic concerns, as the International Monetary Fund (IMF) urged Pakistan to implement taxes on agricultural inputs and proposed adjustments of over Rs400 billion in the fiscal framework. The government is actively pushing provinces to meet these IMF targets. Discussions are also underway between the IMF and Pakistan to potentially lower the GDP growth forecast to 3.5%.

In other economic developments, Pakistan is seeking to unlock investment from Saudi Arabia and has signed six accords with Malaysia. The government reported a reduction in debt by Rs430 billion during July and August, while a new meat deal has been secured with Azerbaijan.

Meanwhile, the price of gold has reached new heights due to global uncertainty, and farmers continue to face challenges from recent floods. The Punjab government and the central authorities are reportedly at odds over financial matters.

In trade-related news, the trade deficit is expected to rise as exports fall, according to SM Tanveer. Karachi traders are also reportedly facing extortion threats, as stated by the Karachi Chamber of Commerce and Industry (KCCI).

Foreign investors are seeking refunds amounting to Rs96.6 billion, while the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has rejected objections to the used car import policy. In the automotive sector, Chery plans to begin local assembly by 2026.

Despite a global increase of 32%, urea prices in Pakistan have fallen by 7%. Meanwhile, Pakistan State Oil (PSO) has expressed concerns regarding the allocation of extra high-speed diesel.