Pakistan’s benchmark index loses 4,045 points as investors remain cautious, while the upcoming monetary policy decision and corporate earnings season are expected to influence market direction.

KARACHI, October 24, 2026: The KSE-100 Index declined by 2.4% week-on-week (WoW), shedding 4,045 points to close at 162,375 points, as persistent geopolitical uncertainty weighed on investor sentiment, according to Arif Habib Limited’s Pakistan Weekly Update dated October 23.

The brokerage said the upcoming Monetary Policy Committee (MPC) meeting on October 26 and the ongoing September-quarter corporate results season would likely shape market direction, alongside developments on the geopolitical front.

Pakistan’s FY26 GDP growth was revised down to 3.65% from 3.70%, while FY25 growth was revised to 3.11% from 3.18%. The economy reached Rs126.4 trillion ($450.4 billion), with per capita income of $1,896.

Power generation rose 5% year-on-year to 13,217 gigawatt-hours in September 2026. However, generation costs increased 32% to Rs9.35 per unit, prompting distribution companies to seek a positive fuel cost adjustment of Rs2.56 per unit.

Meanwhile, cotton arrivals increased 8% year-on-year to 4.081 million bales by October 15. The government has set a production target of 9.64 million bales for FY27, compared with 7.05 million bales in FY26.

Petrol prices declined 3.2% week-on-week to Rs377.71 per litre, while high-speed diesel prices fell 1.3% to Rs391.75 per litre.

Pakistan’s liquid foreign exchange reserves decreased by $30.3 million to $26.83 billion as of October 16. The State Bank of Pakistan’s reserves rose to $21.49 billion, while commercial banks’ reserves fell to $5.34 billion. Import cover stood at 3.01 months.

The Pakistani rupee appreciated marginally by 0.03%, closing at Rs276.82 against the US dollar.

Despite the weekly decline, the KSE-100 Index was trading at a price-to-earnings ratio of 7.02 times, offering a dividend yield of 7.0%, according to the brokerage.