Karachi, October 18, 2025 – The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) witnessed a gain of 708 points, or 0.4% week-on-week (WoW), closing at 163,806 points amid a highly volatile trading week marked by alternating profit-taking and renewed investor optimism.
According to analysts at Arif Habib Limited (AHL), the market experienced a rollercoaster ride, beginning with cautious selling but later rebounding as positive momentum returned. Investor sentiment improved on the back of easing geopolitical tensions, political stability, and progress on IMF’s Staff-Level Agreement (SLA) and Resilience and Sustainability Facility (RSF) for Pakistan.
During the week, Pakistan reached a staff-level agreement with the IMF for the second review of the USD 7 billion Extended Fund Facility (EFF) and the first review of the USD 1.3 billion RSF. Once approved by the IMF Executive Board, this agreement will unlock USD 1 billion under the EFF and USD 200 million under the RSF.
On the macroeconomic side, the trade deficit widened by 33.8% year-on-year to USD 9.4 billion in 1QFY26, while September’s deficit stood at USD 3.4 billion. The government successfully raised PKR 506.7 billion in PIBs and PKR 775.9 billion in T-Bills, surpassing set targets.
Refinery upliftment (excluding furnace oil) increased 21.6% YoY, driven by stronger HSD demand, while oil production rose 1.3% WoW to 65,301 barrels per day. SBP reserves climbed to USD 14.44 billion, while the PKR remained stable at 281.10 per USD.
Looking ahead, market experts expect select stocks to stay in focus as the corporate results season continues, and potential IMF approval may further bolster investor confidence.