Karachi: Pakistan's economic activity remained resilient in February 2026, with high-frequency indicators largely sustaining their positive trajectory. Passenger car sales grew by 41.2% year-over-year, and truck and motorcycle sales increased by 39.9% and 24.5% respectively, reflecting continued strength in auto demand. Auto financing reached a 38-month high amid declining interest rates and credit uptake. Cement dispatches posted a 12.5% increase, while power generation and private sector credit expanded by 10.8% and 13.6%, respectively. Conversely, urea sales declined by 27.9% due to significant pre-buying in December 2025.
According to JS Global, on the macroeconomic front, inflation stood at 7.0% year-over-year, while six-month Treasury bill yields reached 10.6% in February 2026. Remittances amounted to $3.3 billion, marking a 5.2% increase, and foreign exchange reserves improved to $16.3 billion, reflecting a 44.9% rise, thus supporting external stability. The current account recorded a surplus of $427 million, and foreign direct investment inflows rose sharply by 60.9% year-over-year in February 2026.
The KSE-100 Index declined by 8.7% month-over-month in February 2026, primarily driven by a lack of strong triggers and profit-taking following December 2025 quarter results. Rising regional geopolitical tensions, including Pak-Afghan strikes, further weighed on investor confidence.
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