KARACHI – The PSX started the new business week on a downward trend, as investors reacted to rising fuel prices and ongoing talks with the International Monetary Fund (IMF).
The KSE-100 index fell by 2,242 points, closing at 177,360 points, a loss of 2.25 percent during intraday trading. Market analysts say investor sentiment remains cautious ahead of the IMF team’s visit.
The IMF is conducting the third review under Pakistan’s Extended Fund Facility (EFF). Officials will evaluate key economic indicators before recommending the release of a $1 billion loan tranche to Pakistan.
Experts believe that the delayed IMF tranche and uncertainty over economic policies are causing pressure on the PSX. Investors are closely monitoring developments, especially in the energy and financial sectors.
Fuel price hikes have further added to market concerns. Petrol prices were increased by Rs5 per litre, while high-speed diesel (HSD) surged by Rs7.32 per litre for the second half of February 2026. The increases follow changes in global oil markets and recommendations by the Oil and Gas Regulatory Authority.
With the revision, petrol now costs Rs258.17 per litre, up from Rs253.17. Diesel prices rose to Rs275.70 per litre from Rs268.38. Rising fuel costs are expected to increase transportation and freight charges nationwide, affecting businesses and consumer goods prices.
Analysts say these factors have created uncertainty at the PSX, as investors weigh the impact of higher energy costs on corporate profits. Many expect continued volatility until the IMF review concludes and policy directions become clearer.
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The stock market is likely to remain sensitive to global oil prices, government policies, and IMF decisions in the coming days. Traders advise careful monitoring of economic updates and corporate earnings to make informed investment decisions at the PSX.
