Karachi, January 24, 2026 – Pakistan Stock Exchange’s benchmark KSE-100 Index recorded a robust weekly gain of 4,068 points, up 2.2%, as the market closed at 189,167 points on January 23.
Analysts at Arif Habib Limited attributed the rally to easing geopolitical tensions, fresh liquidity, and expectations of an upcoming interest rate cut.
During the week, T-bill yields dropped to multi-year lows, with 3-month and 6-month rates in single digits and 12-month rates slightly above 10%, reflecting easing inflation and a dovish monetary policy stance.
Power generation rose 8.8% year-on-year (YoY) to 8,487 GWh in December, marking the second-highest monthly output on record. For the first half of FY26, generation increased 1.1% YoY to 67,356 GWh.
Pakistan’s current account deficit widened to USD 244 million in December 2025, reversing previous surpluses, while net FDI outflows reached USD 135 million, with China, Hong Kong, and UAE accounting for 86% of inflows. Meanwhile, the real effective exchange rate (REER) declined 0.98% month-on-month to 103.73.
The Pakistani rupee slightly strengthened against the US dollar, closing at PKR 279.86/USD, while SBP foreign reserves rose by USD 15.9 million to USD 16.1 billion. Thursday marked Pakistan’s first IPO of 2026, as Pak-Qatar General Takaful Limited (PKGTL) recorded a historic 21x oversubscription.
Looking ahead, the KSE-100 Index is expected to maintain positive momentum next week, supported by a projected 75bps rate cut. Analysts highlight select top picks including MEBL, NBP, FFC, OGDC, PPL, FCCL, KOHC, NPL, NCPL, SYS, AIRLINK, PSO, SAZEW, INDU, and PAEL, offering a dividend yield of ~5.3% at a current PER of 9.4x.