Karachi: Pakistan's exploration and production (E&P) sector is poised for a significant financial upswing, with revenues projected to reach unprecedented levels in the fourth quarter of fiscal year 2026, driven by increased oil and gas production and elevated oil prices.

According to AKD Securities Limited, the earnings for the E&P sector are anticipated to rise by 32% year-on-year during 4QFY26E. This growth is attributed to not only the enhanced production levels but also the favorable oil pricing environment. The report indicates that domestic E&P companies are set to gain from heightened drilling activities, which have been bolstered by improved liquidity within the sector.

AKD Securities has reiterated a positive investment stance on leading companies in the sector, specifically OGDC, PPL, MARI, and POL. The report provides target prices for December 2026 at PkR522, PkR412, PkR935, and PkR850 per share, respectively, underscoring confidence in the sector's growth trajectory.