Karachi, April 18, 2026 – Pakistan’s benchmark KSE-100 index posted a strong weekly gain of more than 6,700 points, buoyed by improving investor sentiment linked to easing geopolitical tensions and supportive macroeconomic indicators.
The index closed the week ended April 17 at 173,939 points, up 4.0% week-on-week, according to market data and analyst commentary. The rally was largely driven by optimism surrounding a temporary ceasefire between the United States and Iran, along with expectations of further diplomatic progress and a separate 10-day ceasefire in Lebanon.
Analysts said the improved geopolitical outlook helped restore confidence in equities, prompting renewed buying across key sectors.
On the economic front, Pakistan reported a current account surplus of $1.07 billion in March 2026, significantly higher than $231 million in February, bringing the cumulative balance for the first nine months of the fiscal year to a marginal surplus.
Industrial activity showed mixed trends, with Large-Scale Manufacturing (LSM) output rising 6.5% year-on-year in February, although declining 9.0% on a monthly basis. For the July–February period, LSM expanded by 5.9% compared to the same period last year.
The banking sector also demonstrated resilience, with deposits increasing 18.6% year-on-year to Rs37.5 trillion in March. Advances rose 8.1%, while investments surged 20.8%, reflecting strong liquidity and lending activity.
Energy indicators remained positive, as power generation grew 6% year-on-year to 8,939 GWh in March, supported by higher demand and contributions from hydel, coal, gas and wind sources. Generation costs declined 15% year-on-year to Rs8.08 per unit due to an improved energy mix.
In the auto sector, sales rose 40% year-on-year to 15,500 units in March, though they fell 9% compared to February. Cumulative sales for the nine-month period increased 43% to 144,000 units.
Technology exports continued to perform strongly, rising 20% year-on-year to $413 million in March, accounting for a significant share of services exports.
Meanwhile, Oil and Gas Development Company Limited announced a major hydrocarbon discovery, adding to positive sentiment in the energy sector.
Pakistan’s external position remained stable despite a $1.3 billion decline in foreign exchange reserves to $15.08 billion, mainly due to Eurobond repayments. The rupee showed marginal appreciation, ending the week at 278.92 against the U.S. dollar.
Looking ahead, analysts expect market direction to remain closely tied to developments in U.S.-Iran negotiations and upcoming corporate earnings. The KSE-100 is currently trading at a price-to-earnings ratio of around 8.5 times, offering an attractive dividend yield near 6%, which may continue to support investor interest in the near term.