PSX benchmark index down 0.70%WoW

Pakistan Stock Exchange (PSX) remained volatile throughout the week, amid persistent Middle East military conflict driving volatility in international oil prices. The benchmark index lost 1,126 points or 0.7% during the week to close at 152,740 on Thursday, March 19, 2026, the last trading day before Eid Holidays.

Market participation remained lackluster during the week, with average daily traded volume declining to 418 million shares, from 548 million shares in the prior week. Developments on the economic front remained encouraging, as the country posted Current Account surplus of US$427 million in February 2026, against a deficit of US$85 million during the same period last year, primarily driven by higher workers’ remittances.

Industrial activity (LSMI) expanded by 10.5%YoY in January 2026, led by growth in the automobile and textile sectors.

Power generation increased by 11%YoY in February 2026, supported by lower tariffs and a shift of industrial consumers towards national grid.

Urea offtakes declined by 28%YoY during February 2026 due to elevated channel inventory following advance procurement in December 2025. offtakes rose 2.5x YoY over the same period.

T-Bill yields rose by 51 to 100bps in the first auction following SBP decision to leave policy rate unchanged.

Other major news flow during the week included: 1) Pakistan secures alternative fuel supply from Gulf amid regional tensions, 2) ADB unveils US$10 billion financing strategy for Pakistan, 3) IT exports rise 20%YoY to US$365 million, 4) REER drops to 102.5 in February 2026, and 5) GoP considering to hold fuel price till 31st March, 2026.

Woollen, Synthetic & Rayon and Close-End Mutual Fund were amongst the top performing sectors, while Leather & Tanneries, Commercial Banks and Miscellaneous were amongst the laggards.

Major selling was recorded by Foreigners and Mutual Funds with a net sell of US$9.3 million and US$4.5 million, respectively.

Banks and Individuals absorbed most of the selling with a net buy of US$10.3million and US$7.4 million, respectively.

Top performing scrips of the week were: PKGP, ABOT, IBFL, BNWM, and KOHC, while laggards included: NBP, AICL, PABC, UNITY, and SRVI.

Going forward, AKD Believes market sentiment will hinge on the developments in the Middle East conflict. At the same time, investor focus will remain on the government’s energy conservation measures, diversification of fuel imports, and progress on the IMF review.

Over the medium term, any de -escalation in the conflict could spark a strong market rebound, as recent corrections have made valuations attractive.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

Pakistan: Like Minister, Prime Minister also lacks rational thinking

Yesterday, I posted a blog; its title was How can Finance Minister sound so dumb? My heart was even heavier to read the news today, “Prime Minister Shehbaz announces Rs28 billion relief package to mitigate impact of fuel price hike”.

I have all the reasons to believe that the prime minister is not fully aware of nitty-gritty of managing economy of Pakistan. However, he has a team of ‘economic experts’, which is fully aware of the targets agreed with the International Monetary Fund (IMF) and prevailing state of the affairs.

Having gone through the details I arrived at the conclusion that the prime minister is either stubborn or does not listen to what is being advised by the experts.

Reportedly, on Friday, Prime Minister Shehbaz Sharif announced his government would launch a new relief package of Rs28 billion per month to protect the poor from the burden of petrol and diesel price hike.

Any government has a right to pay subsidy provided it has enough money in its kitty. Pakistan already faced huge budget deficit, therefore, it can’t afford to pay untargeted subsidies.

Prime minister said under the relief package, the premier said, 14 million poor families, comprising 85 million people, would be given Rs2000 per family. I am surprised to read his statement as he is creating a new breed of baggers. He is also opening floodgates of corruption.

He said this was in addition to the monetary assistance being given to them under the Benazir Income Support Program. This relief package will be added in the next budget, the premier said.

Prime minister hasn’t come out of the shadow of Imran Khan. In his first address to the nation — a day after his government removed fuel subsidies and increased the price of petrol by Rs30, he made two points: 1) it was because of the previous government  2) he had to take the difficult decision with a heavy heart.

He termed the PTI government's decision to grant fuel subsidy a trap for the upcoming government. "Petroleum prices are increasing worldwide but they (PTI government) subsidized fuel despite knowing that the treasury cannot bear its burden."

The hike in petroleum prices is a universal phenomenon and Khan can’t be blamed for this. The added insult is huge depreciation of Pak rupee. This depreciation was mostly because of failure of the incumbent government to revive relationship with IMF.

This is also to remind the prime minister that his government is yet to announce increase in electricity and gas tariffs. Would he further increase the subsidy?

In my opinion, much of the burden of common man would be reduced if government orders 50% reduction in the remunerations of MPAs, MNAs, Senators and Ministers.  Similarly ‘fuel’ allocations should also be reduced to half.

If common man is required to pay higher prices of petroleum products, electricity and gas why perks of elected representatives can’t be reduced to half?