Karachi: The KSE100 Index closed the week down by 269 points, a 0.33% decrease, ending at 79,944 points, reflecting market volatility driven by the Supreme Court's decision on reserved seats and ongoing IMF negotiations. Despite the verdict favoring the opposition, the market managed to stabilize. Additionally, significant movements in policy and remittances impacted the financial landscape.

According to AKD Securities Limited, the IMF has demanded the dissolution of the Pakistan Sovereign Wealth Fund and a 45% tax on agricultural income. The Prime Minister's PkR50 billion subsidy announcement for residential power consumers (up to 200 units) is pending a response from the IMF. Energy tariffs have been adjusted by NEPRA, with increases of PkR3.9-7.1 per kWh for some consumer categories, and a reduction for industrial consumers. The financial year closed with remittances at a high of US$3.16 billion for June, contributing to a total of US$30.3 billion for the year, marking an 11% year-on-year increase.

The automotive sector saw a significant drop in sales, reaching a 15-year low with only 104,000 units sold. Market participation also decreased slightly, with the average daily traded volume stable at 439 million shares. The Pakistani Rupee remained steady against the US dollar, ending the week at 278.4.

In government financial developments, the Public Sector Development Programme spending doubled to PkR705 billion. Government debt increased to PkR67.8 trillion as of May. The government also raised PkR442 billion through Treasury bills, with yields falling by up to 18 basis points. The tax-to-GDP ratio for the fiscal year stood at 9%.

Sector performance varied, with the automobile sector showing strength, while the Vanaspati and allied industries, among others, faced declines. Individual investors and mutual funds were net sellers, whereas foreign buyers absorbed the selling pressure, adding a net of US$3.96 million in purchases.