Karachi: Despite extended geopolitical tensions, Pakistan's economic performance in April 2026 exhibited mixed trends across various sectors. The automobile industry showed significant growth, with passenger car and tractor sales increasing by 106.9% and 76.3% year-on-year, respectively. This growth was supported by a rise in auto financing, which increased by 36.6% year-on-year, reaching Rs359.6 billion. Urea sales also saw an 84.7% year-on-year increase despite a rate hike during the month.
According to JS Global, on the macroeconomic side, secondary market yields stood at 11.5% as the State Bank of Pakistan raised the policy rate by 100 basis points to 11.50% in response to resurgent inflation. The Consumer Price Index rose to 11.1% year-on-year, driven by domestic fuel price hikes and energy tariff adjustments. On the external front, the current account recorded a deficit of US$324 million, influenced by a higher import bill of US$6.9 billion. Additionally, net Foreign Direct Investment inflows declined by 69.5% year-on-year to US$54.5 million, primarily due to a US$102 million outflow from the cement sector in Lebanon.
In contrast, the KSE-100 index experienced a 9.6% month-on-month growth, buoyed by discussions between the US and Iran aimed at resolving ongoing issues. The one-year return for April 2026 stood at 46.4%.
The post Pakistan’s Economic Indicators Show Mixed Trends Amid Geopolitical Tensions appeared first on Pakistan Business News.