Karachi: The KSE-100 index experienced a notable increase of 5% over the past week, driven by optimism surrounding a potential peace agreement between the United States and Iran. This increase reflects an 8,121-point rise in the index, even as regional tensions persist and Brent crude prices stabilize near $100 per barrel.
According to JS Global, inflation in Pakistan accelerated to 10.9% year-on-year in April 2026, the highest in nearly two years, primarily due to rising fuel prices. The trade deficit widened by 4% year-on-year to $4 billion, despite a 14% rise in exports. Cumulatively, the trade deficit expanded by 20% year-on-year to $32 billion during the first ten months of the fiscal year 2026. Large-scale manufacturing posted an 11% year-on-year increase in March 2026, resulting in a 6.5% growth for the first nine months of the fiscal year.
On the fiscal front, the Federal Board of Revenue's revenue collection fell short of its monthly target by Rs73 billion in April 2026, contributing to a cumulative shortfall of Rs683 billion for the fiscal year. The International Monetary Fund's Executive Board is set to meet on May 8th to consider approving a $1.2 billion tranche for Pakistan as part of the ongoing IMF program. The Finance Minister expressed optimism about the approval, citing improving macroeconomic indicators despite Middle Eastern tensions. Additionally, the State Bank of Pakistan's foreign exchange reserves increased by $23 million week-on-week to $15.8 billion.
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