Karachi, The Karachi Stock Exchange (KSE) 100 Index concluded this week with a 1.5% decrease, closing at 64,816 points, amid the onset of Ramadan and significant political and economic developments. The trading week was marked by heightened volatility and a notable downturn in average trading volumes, which fell by 20% week-over-week, reflecting diminished market activity as the holy month commenced.

According to JS Global, the week was underscored by the appointment of new cabinet ministers and the arrival of an International Monetary Fund (IMF) delegation for the final review under the US$3 billion Stand-By Arrangement (SBA). The new government has demonstrated a strong commitment to adhering to the IMF's set benchmarks and targets. However, concerns have been raised by the IMF regarding Pakistan's strategies to tackle expected revenue shortfalls in the fourth quarter of fiscal year 2024 and to reduce the burgeoning circular debt within the energy sector.

The findings from this review are expected to be compiled into a report to be submitted to the IMF's executive committee by the second week of April, with the anticipation of approving a US$1.1 billion tranche. On the economic front, the recent auction of Pakistan Investment Bonds (PIBs) saw unchanged cut-off yields, with three-year, five-year, and ten-year PIBs recorded at 16.8%, 15.5%, and 14.35% respectively. The State Bank of Pakistan's (SBP) foreign exchange reserves also remained steady at US$7.9 billion throughout the week.

This period of financial and political transition, coinciding with the observance of Ramadan, has ushered in a phase of cautious watchfulness among investors and market participants. The outcomes of the IMF's final review, coupled with the government's fiscal strategies in the upcoming quarter, are poised to be critical determinants of Pakistan's economic trajectory in the near term.