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Digital monitor showing the share prices at the Pakistan Stock Exchange (PSX) in Karachi. — INP/File
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KARACHI: The Pakistan Stock Exchange (PSX) is expected to be driven through the geographical political risks of the feelings of cautious investors before the Middle East, especially in the Middle East, and before significant financial progress.
The market will remain sensitive to economic and political gestures, with efforts to re -finance $ 1.3 billion from Chinese banks and the end of the bidding process for the privatization of Pakistan International Airlines (PIA) before June 30. In addition, any change in the movement of oil prices globally and any change in the position of monetary policy by global central banks will affect investors’ behavior on the domestic front.
The benchmark KSE-100 Index eliminated 1.74 percent on a week-long basis of the week, closing at 76,706 points between widespread decrease by promoting geo-political tension and weakening economic indicators. Fish emotions have shot the weakness of the global equity market as tensions between Israel and Iran have continued to weigh the confidence of investors around the world.
Topline securities analyst Nabil Aaron attributed market shortage to geographical political uncertainty. He noted that the hunger for investors diminished as the Israeli-Iran conflict caused problems in the global financial markets, which causes dangerous assets like equity to emerging markets like Pakistan.
On average daily trade volume fell 9.4 % to 822 million shares, while the average daily trade cost was Rs 22 billion, which reflects the cautious stance of investors. JS Research analyst Syed Daniel Hussein said that the KSE 100 Index reduced its recent top by 3.5 percent or 4,330 points, mainly due to rising global commodity prices and falling into the Asian markets.
In the key economic progress, the State Bank of Pakistan (SBP) kept its policy rate at 11 % during the meeting of its Financial Policy Committee (MPC) on Monday. Analysts viewed the decision as a cautious move among inflation concerns due to global oil prices. Brent raw prices reached $ 77 a barrel, which is marked at a height of five months on the back of fear of a global supply side.
Signs of tensions were shown in the country’s external position, as the current account of May 2025 recorded a $ 103 million deficit, while in April 2025, over $ 47 million. However, for eleven months of the financial year 25, the total current account was up to $ 1.8 billion. In particular, exports in May have declined by 19 % year -on -year, while imports have increased by 9.0 % during the same period, raising concerns over the stability of the trade balance.
On financial matters, the federal cabinet approved a plan to reorganize the largest financial organization so far to tackle the circular loan crisis in the power sector. The project has been subjected to retirement of Rs 1.275 trillion in circular debt over the next six years in an attempt to restore financial stability and attract investment in the energy sector.
With further support of external financing, Pakistan signed a $ 1 billion syndicated term finance facility (STFC) with commercial banks in support of the Asian Development Bank (ADB). These banks are primarily based in the Middle East, and this management is seen as an important step in reducing the pressure of short -term external financing. In addition, the government is working to finalize a $ 1.3 billion deal with Chinese banks by June 30.
In the domestic debt market, the government successfully collected Rs 557 billion in auction of Pakistan Investment Bond (PIB), against the target of Rs 300 billion. Production has decreased by 29 to 64 twenty points, indicating strong demand and improving investors’ sentiments about long -term sovereignty loans.
Meanwhile, June 19 marked the deadline for expressing interest in the pursuit of Pakistan International Airlines (PIA). The Privatization Commission has reported that five bids have been reported, indicating a significant interest in the national career distribution process, which is being closely seen as a test case for future privatization measures.
With numerous economic and policy motivations on the horizon, the coming week is likely to be sensitive, with investors both look at domestic financial transit and develop global promotion to assess the direction of the market nearby.
