KARACHI – Pakistan’s stock market remained under pressure this week as geopolitical tensions and high global oil prices affected investor sentiment. The PSX saw volatility throughout the week, with the benchmark KSE-100 index closing at 150,399, down 1,309 points or 0.9% week-on-week.
The PSX opened the week on a negative note, dropping 4,865 points (-3.21%) to 146,843. On Tuesday, it rebounded, gaining 1,900 points (+1.29%) to 148,743. Wednesday saw a sharp rise of 6,768 points (+4.55%) as the index reclaimed the psychological 150,000 level. However, Thursday and Friday sessions saw declines of 3,500 points (-2.25%) and 1,613 points (-1.06%), respectively, bringing the week’s closing to 150,399.
Analysts from Arif Habib Limited said the PSX remained volatile due to ongoing geopolitical developments. Persistent selling pressure affected market performance despite occasional recovery sessions. Investor sentiment continues to be fragile amid external pressures and rising commodity prices.
Economic indicators also influenced market trends. Inflation in March 2026 rose to 7.3% year-on-year, the highest since August 2024. High-speed diesel prices increased by Rs184.9 per litre, while petrol rates rose by Rs137.24 per litre. The removal of the price differential claim on diesel and the increase in petroleum levy impacted business costs, according to analysts.
On the macroeconomic front, Pakistan’s GDP grew 3.89% in 2QFY26, led by industrial output (+7.4%), agriculture (+1.76%), and services (+3.69%). Exports fell 14% YoY to $2.3 billion, while imports declined 5.4% to $5 billion, resulting in a trade deficit of $2.7 billion. Public debt increased 1.1% to Rs81.4 trillion ($290.6 billion).
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Investors remain watchful as Pakistan reached a staff-level agreement with the IMF under the Extended Fund Facility and Resilience and Sustainability Facility, paving the way for a $1.2 billion tranche, subject to approval. Market experts say the PSX will likely continue to respond to global oil prices, geopolitical events, and domestic economic developments in the coming weeks.
