The Pakistan Stock Exchange (PSX) continued its downward trend, with the KSE-100 Index at 161,988.12, down 1,110.07 points or 0.68% from 163,098.19. The index hit an intraday high of 161,988.12 but fell to 158,067.92, a -3.08% drop. Investor caution over inconclusive IMF talks, FBR revenue misses, and a widening trade deficit fueled the decline.
The IMF mission’s September 24–October 8 visit ended without a staff-level agreement, stalling the $7 billion Extended Fund Facility. Unresolved external financing and the Governance and Corruption Diagnostic report delayed progress. Officials expect a resolution within a week, but uncertainty persists. Finance Minister Muhammad Aurangzeb called the talks productive, yet the lack of a deal prompted profit-taking.
The Federal Board of Revenue missed its FY25 target by Rs1.2 trillion, despite Rs1.3 trillion in new taxes. Q1 FY26 saw a Rs190 billion shortfall, with the IMF projecting a Rs400 billion annual miss. September’s trade deficit surged 46% year-on-year to $3.34 billion, with imports up 14% to $5.85 billion and exports down 11.7% to $2.5 billion. The July–September gap rose 32.9% to $9.37 billion, straining reserves.
Read: Pakistan Faces $30B Import Data Gap as IMF Demands Transparency
Remittances grew 11% year-on-year to $3.2 billion in September, totalling $9.5 billion for Q1 (+8%). SBP reserves edged up $20 million to $14.4 billion, and the rupee appreciated to Rs281.17 per US dollar. FY25 GDP growth was revised to 3.04% from 2.68%.
Trading volume fell 7.6% week-on-week to 1.6 billion shares, with value at Rs50.5 billion. Of 481 companies, 184 rose, 264 fell, and 33 were unchanged. PTCL led gains (+3.56%), while HBL (-3.09%), UBL (-1.27%), and NBP (-3.76%) dragged the index. Analysts see 163,800–164,200 as support, with the result season potentially easing pressure.
The KSE-100’s fourth straight decline signals investor unease amid economic headwinds. Resolving IMF issues and trade imbalances is crucial for recovery.
