Karachi: After a sluggish start, Pakistan Stock Exchange's KSE-100 index ended the week on a high note, closing at 141,035 points, marking a 1.3% increase from the previous week. The index also reached a new peak of 141,161 points during the week, driven by a significant US deal targeting Pakistan's oil reserves, which spurred a rally in oil stocks.

The market's positive momentum was further bolstered by the United States' decision to reduce tariffs on Pakistani exports to 19% from an earlier announced 29%, effective August 2025. This move is expected to enhance trade relations and boost Pakistan's export sector.

On the economic front, the State Bank of Pakistan maintained its policy rate at 11% during the latest Monetary Policy Committee meeting, contrary to expectations of a rate cut. This decision comes as the Consumer Price Index for July 2025 stood at 4.1%, an increase from June's 3.2%, attributed to a diminishing base effect.

In fiscal matters, the Federal Board of Revenue surpassed its tax collection target for July 2025 by Rs7 billion, securing a total collection of Rs755 billion. However, the power tariff relief of Rs7.41 per unit, announced by the Prime Minister in March 2025 and initially set for gradual implementation, has been reversed.

Additionally, the State Bank of Pakistan's foreign exchange reserves saw a decline of US$153 million, settling at US$14.3 billion due to external debt repayments. The financial landscape continues to be closely monitored as these developments unfold.