The Pakistan Stock Exchange (PSX) experienced volatile, mixed trading on Thursday as conflicting forces pulled the market in opposite directions. A sharp surge in global oil prices dampened investor risk appetite, while encouraging progress in talks with the International Monetary Fund (IMF) helped cushion the downside.
The benchmark KSE-100 Index touched an intraday high of 157,080.28, gaining over 1,200 points. Conversely, it also hit a low of 153,503.70, losing more than 2,300 points against the previous close of 155,858.47.
Shares across Asia fell sharply as oil prices leapt nearly 9%, with Brent crude crossing $100 a barrel and US crude hitting $95.41. The spike followed reports of fuel tankers being struck in Gulf waters and the closure of Iraqi oil terminals, stoking fresh fears of global inflation and higher borrowing costs.
The International Energy Agency’s plan to release 400 million barrels from strategic reserves, including a major 172 million-barrel release from the US, failed to calm nervous markets. MSCI’s broadest Asia-Pacific index outside Japan fell 1.6%, while US futures also pointed to a lower open.
IMF Talks Provide Crucial Support
Offsetting some of the global pessimism, reports emerged that Pakistan and the IMF are nearing a consensus on a revised macroeconomic framework under the $7 billion Extended Fund Facility (EFF). According to The News, the Federal Board of Revenue (FBR) tax collection target may be revised down further to Rs13.45 trillion by the end of June 2026.
The revised framework under discussion projects CPI-based inflation to hover around 7% to 7.5% for the current fiscal year. This follows an FBR shortfall of Rs428 billion against the revised target during the first eight months of FY26, with the tax-to-GDP ratio now projected at 10.6% by June 2026.
Read: PSX Rally on Falling Oil Prices Lifts KSE-100 Above 158,000
In positive economic news, the State Bank of Pakistan (SBP) reported that the United Arab Emirates (UAE) emerged as the largest source of remittances in February. Overseas Pakistanis in the UAE sent home approximately $696 million, edging past inflows from Saudi Arabia, which stood at about $685.5 million.
Within the UAE, Dubai accounted for the bulk, with $566 million, followed by Abu Dhabi ($102 million) and Sharjah ($12 million). Overall remittances for February totalled $3.29 billion, a slight dip from January but a healthy 5.2% higher than the same month last year. Other major contributors included the UK ($532 million), the US ($319 million), and other Gulf nations, collectively sending $317 million.
