Karachi: The KSE-100 Index experienced a notable decline amid escalating geopolitical tensions between Iran and the United States, as global equity markets faced pressure this week. The index fell by 6,434 points, a 3.6% decrease week-on-week, closing at 173,169 points. This decline coincided with a rise in international oil prices, with Brent crude reaching a seven-month high of $72 per barrel.
According to JS Global, the tension between the United States and Iran has heightened uncertainty, impacting global markets. On the domestic front, an International Monetary Fund (IMF) mission is scheduled to visit on February 26 to review Pakistan's progress under the $7 billion Extended Fund Facility (EFF) and discuss the FY27 budget. Pakistan recorded a current account surplus of $121 million in January 2026, contributing to a cumulative surplus of $1.07 billion for the first seven months of FY26, compared to $560 million in the same period of FY25.
In an effort to provide relief to the industry, the National Electric Power Regulatory Authority (NEPRA) announced a reduction in electricity tariffs for industrial consumers by approximately Rs4 per unit. Externally, Pakistan repaid a $700 million commercial loan, with a $1.3 billion Eurobond maturing in April 2026. The government also plans to raise $250 million through Panda bonds following the Chinese holidays. Additionally, in the latest Treasury bill auction, the government raised Rs677 billion, exceeding its target of Rs450 billion, with yields increasing by 9 to 20 basis points across tenors.
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