The stock market traded cautiously on Friday, fluctuating in a range as investors weighed the ongoing International Monetary Fund (IMF) review in Pakistan and lingering global geopolitical and economic headwinds.
“Stocks are under pressure amid security unrest and geopolitical uncertainty,” said Ahsan Mehanti, managing director and CEO of Arif Habib Commodities.
“Weak global crude oil prices and weakness in global stocks amid fears over the outcome of the US government shutdown, US tariffs played a catalytic role in the bearish activity of the PSX,” he added.
During intraday trading, the Pakistan Stock Exchange (PSX) benchmark KSE-100 index hit a high of 165,140.76 points, up 609.96 points, or 0.37 percent, and declined to a low of 162,411.25 points, reflecting a decline of 2,119.55 points, or -1.29 percent, from the previous close of 164,530.8 points.
The US government shutdown entered its third week after senators once again rejected a Republican funding bill, with President Donald Trump increasing pressure on Democrats as public services remain crippled. The standoff has destabilized global markets, raising concerns about fiscal stability and economic growth in the United States.
At home, unresolved negotiations between Pakistan and the IMF on a services-level agreement continued to weigh on sentiment. Sources told The News that disagreements persist over external financing tables and the release of the Governance and Corruption Diagnostic (GCD) assessment report, two key elements of the IMF’s Memorandum of Economic and Financial Policies (MEFP).
Officials expressed optimism that these issues could be resolved within the next two weeks, paving the way for a deal.
Meanwhile, the State Bank of Pakistan (SBP) reported that foreign workers’ remittances increased by 8.41 percent year-on-year in the first quarter (July-September) of the financial year 2025-26 to $9.54 billion, compared to $8.80 billion in the same period last year.
September inflows stood at $3.18 billion, up 11.33 percent, driven by remittances from Saudi Arabia ($750.9 million), the United Arab Emirates ($677.1 million), the United Kingdom ($454.8 million) and the United States ($269 million).
Advisor to Finance Minister Khurram Schehzad said Pakistan received $38.3 billion in remittances in the previous fiscal year and he expects these flows to exceed $41 billion this year.
The SBP’s foreign exchange reserves increased by $20 million to $14.42 billion in the week ending October 3, even after the repayment of $500 million in Eurobonds. Total liquid reserves increased to $19.81 billion, while reserves held by commercial banks decreased by $6 million to $5.39 billion.
On Thursday, the KSE-100 index had fallen by 735.94 points, or 0.45 per cent, to close at 164,530.81 points compared to 165,266.75 points in the previous session. The index recorded a high of 166,729.97 points and a low of 164,306.77 points.
