Karachi: The KSE-100 Index fell by 2.0% over the past week, losing 3,483 points, as investors reacted to growing tensions and continued military exchanges between the United States and Iran. Meanwhile, Brent crude oil prices experienced a 4.0% rise, reaching $95 per barrel, amid persistent uncertainty.

According to JS Global, Pakistan's monthly trade deficit narrowed by 14% year-over-year to $2.6 billion, mainly due to a 7% decline in imports. However, the cumulative trade deficit rose by 17.5% year-over-year to $34.8 billion during the first eleven months of the fiscal year 2026, driven by a 5.9% increase in imports. Inflationary pressures mounted, with the Consumer Price Index inflation hitting 11.7% in May 2026, marking the highest level in 23 months. Fiscal challenges continued as the Federal Board of Revenue's tax collection remained below target, with a cumulative shortfall of Rs868 billion during the same period. Total collections amounted to Rs11.2 trillion against a revised target of Rs12.09 trillion.

In related developments, the announcement of the federal budget was delayed to June 10, 2026, due to ongoing discussions with the International Monetary Fund regarding revenue measures, development spending, and fiscal targets. On a positive note, the State Bank of Pakistan's foreign exchange reserves saw a modest increase of $43 million, reaching $17.19 billion as of May 29, 2026.