Karachi: The KSE-100 Index experienced a 3.5 percent decline this week, closing at 163,098, as investors engaged in profit-taking following a five-week bullish streak. The pullback was particularly evident in key sectors such as Oil and Gas exploration and production, Cement, and Banking, which posted negative returns of 5.5 percent, 4.6 percent, and 3.4 percent, respectively.

Average daily trading volumes also saw a decrease of 9 percent week-on-week, dropping to 1,357 million shares. The market downturn coincided with the International Monetary Fund's (IMF) visit to Pakistan to conduct the second review of the ongoing $7 billion Extended Fund Facility program. Discussions included flood-related fiscal adjustments and other fiscal issues, which will continue in policy-level talks.

In a positive economic development, Pakistan reported an 11 percent year-on-year growth in remittances, reaching $3.2 billion in September 2025. Cumulatively, remittances for the first quarter of fiscal year 2026 amounted to $9.5 billion, marking an 8 percent increase year-on-year.

On the privatization front, the process for Pakistan International Airlines (PIA) is nearing its final stages, with bidding and negotiations expected to conclude by the end of the year. The government is also advancing the privatization of Distribution Companies (DISCOs) to fulfill IMF reform commitments.

Additionally, the State Bank of Pakistan's reserves increased marginally by $20 million week-on-week, standing at $14.4 billion.