Karachi, April 25, 2026 – The benchmark KSE-100 Index of the Pakistan Stock Exchange declined by 2 percent on a weekly basis, shedding 3,267 points to close at 170,672 for the week ended April 24, 2026, as heightened geopolitical tensions weighed on investor sentiment.
According to a weekly market report issued by Arif Habib Limited, the market remained under pressure due to delays in the second round of negotiations between the United States and Iran, despite a ceasefire extension facilitated at Pakistan’s request. The uncertainty surrounding these developments, coupled with rising global oil prices amid disruptions near the Strait of Hormuz, dampened confidence across equity markets.
On the economic front, the World Bank reclassified Pakistan from its South Asia region to the MENAAP grouping, which includes the Middle East, North Africa, Afghanistan, and Pakistan. The change will take effect from fiscal year 2026 and is expected to influence regional economic comparisons and investment outlook.
Pakistan also received the final $1 billion tranche from Saudi Arabia under its $3 billion support package, while successfully repaying $3.45 billion to the United Arab Emirates during the month, meeting its external obligations on time.
Energy sector data showed a decline in production, with gas output falling 3.1 percent week-on-week to 2,962 mmcfd, mainly due to lower supply from Uch and a halt in production at Shewa. Oil production also slipped 1.1 percent to 66,838 barrels per day, reflecting reduced output from key fields.
Meanwhile, the country raised an additional $250 million through the green shoe option, bringing its latest Eurobond issuance to $750 million. Profit and dividend repatriation dropped 35.1 percent year-on-year in March 2026, though it increased sharply on a monthly basis.
Foreign exchange reserves held by the State Bank of Pakistan rose slightly to $15.1 billion, while the Pakistani rupee remained stable against the US dollar.
Analysts expect the KSE-100 Index to remain sensitive to geopolitical developments, ongoing corporate earnings, and the upcoming monetary policy decision. Currently, the index trades at an attractive price-to-earnings ratio of 8.3x, offering a dividend yield of around 6.3 percent, which may support investor interest in the medium term.