Pakistan’s equity market started the week with a downturn on October 6, 2025. Investors booked profits after a record rally, concerned about fiscal slippages and external imbalances. The KSE-100 Index closed at 167,752.40 points, down 1,237.67 points or 0.73% from Friday’s 168,990.07.
During trading, the index reached a high of 169,326.35 (+336.28 points, 0.20%) but fell to a low of 165,997.36 (-2,992.71 points, -1.77%). This volatility reflects market caution.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, explained the pressure. “After a strong run, selling hit due to FBR collection misses, a widening trade deficit, and rising inflation,” he said. He added, “No firm government policies yet, plus high leverage, prompt profit-taking.”
The Federal Board of Revenue (FBR) collected Rs 2.88 trillion in Q1 FY26, falling short of its target of Rs 3.083 trillion by Rs 198 billion. September’s Rs1.23 trillion missed by Rs138 billion, despite 13% year-on-year growth. This fell below the IMF’s Rs3.023 trillion estimate, signalling revenue woes.
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The trade deficit surged 46% year-on-year in September to $3.34 billion. Imports rose 14% to $5.85 billion, while exports decreased 11.7% to $2.5 billion, according to the Pakistan Bureau of Statistics (PBS). From July to September, the gap increased by 32.9% to $9.37 billion. Economists warn that this strains the rupee and reserves, hindering debt payments.
Services trade deficits expanded 21.9% in August to $437 million, with imports up 13.4% to $1.11 billion against 8.4% export growth. Weekly inflation via the Sensitive Price Indicator rose 0.56% for the week ending October 2, ending recent stability.
On October 3, the KSE-100 climbed 500.44 points (0.3%) to 168,990.07 from 168,489.63. It hit 169,988.62 high and 168,613.41 low. Monday’s drop ended the momentum.
