KARACHI, May 2, 2026– Pakistan’s benchmark KSE-100 Index fell sharply during the week ended April 30, losing nearly 7,700 points as global uncertainty and rising oil prices weighed on investor sentiment.
The index closed at 162,994 points, down 4.5% week-on-week, according to analysts at Arif Habib Limited, who attributed the decline to geopolitical tensions and market volatility.
The downturn came amid uncertainty surrounding U.S.-Iran negotiations and a surge in global oil prices, which have raised concerns for Pakistan’s import-dependent economy.
At the start of the week, the State Bank of Pakistan increased its policy rate by 100 basis points to 11.5%, adding pressure on equities by tightening financial conditions.
Energy sector developments also remained in focus, with Pakistan re-entering the spot LNG market to meet rising power demand, securing a cargo at $18.4 per mmBtu to manage near-term electricity shortages.
Meanwhile, circular debt in the power sector rose to 1.84 trillion rupees as of February 2026, highlighting persistent structural challenges in the energy sector.
Oil and gas production data showed mixed trends, with gas output declining slightly while oil production increased on a weekly basis.
In fixed-income markets, the government rejected bids across all tenors in a Pakistan Investment Bond auction as yields rose, while treasury bill yields increased by 40 to 80 basis points, reflecting tightening liquidity conditions.
The Pakistani rupee remained largely stable against the U.S. dollar during the week, trading around 278.77.
Analysts said market direction in the coming weeks would depend heavily on geopolitical developments and external financing flows, including the anticipated approval of a $1.2 billion tranche by the International Monetary Fund Executive Board.
Despite the recent decline, the KSE-100 Index is currently trading at a price-to-earnings ratio of around 7.6 times, offering a dividend yield of approximately 6.7%, which analysts say may attract value investors.