Karachi: The KSE-100 index maintained a steady course this week, closing at 167,085 points with a slight increase of 0.2% compared to the previous week. The market saw a boost in activity as the average daily turnover rose by 21% week-on-week.

The week began with the Consumer Price Index (CPI) for November 2025 recorded at 6.1%, bringing the average inflation for the first five months of the fiscal year 2026 to 5%, a decline from 7.9% during the same period last year. Despite this, the trade deficit widened by 33% year-on-year to $2.85 billion, driven by a 15% drop in exports and a 5% rise in imports.

The Federal Board of Revenue (FBR) reported a tax revenue shortfall of approximately Rs349 billion for the first five months of the fiscal year. In governance news, the finance minister announced that a plan to implement 15 priority recommendations from the International Monetary Fund (IMF) would be finalized by the end of December 2025.

Saudi Arabia provided a financial reprieve by extending its $3 billion deposit facility to Pakistan until December 2026, offering crucial support to the country's external accounts. Meanwhile, the central government's debt increased to Rs77 trillion in October 2025, primarily due to domestic borrowings, which surged by 23% year-on-year to Rs45.49 trillion.

In the privatization sphere, the final bidding for Pakistan International Airlines (PIA) is set to occur on December 23, 2025. Additionally, the State Bank of Pakistan's foreign exchange reserves remained stable at $14.6 billion.

This economic landscape presents a mixed bag of challenges and developments as Pakistan navigates its fiscal and monetary policies.