Pakistan stocks range-bound as investors await budget clarity

Pakistan stock market experienced a range-bound session on Friday as investors remained cautious ahead of the weekend, following recent gains that pushed the index to its highest-ever closing level, analysts said.

Investor interest picked up in the engineering sector in the second half of the session, with stocks closing higher. The surge followed Prime Minister’s directive to gradually abolish Additional Custom Duty (ACD), currently ranging from 2% to 7%, and Regulatory Duty (RD), which varies from 5% to 90%, over the next four to five years.

The Prime Minister also approved capping customs duty (CD) at a maximum of 15%, compared to existing rates that can exceed 100% on certain items.

Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks closed lower as investor sentiment was dampened by concerns over potential IMF-driven tax measures in the upcoming federal budget for fiscal year 2026. Senate approval of a higher grid levy under the CPP Levy Bill 2025 also contributed to bearish market trends.

KSE-100 index declined 0.26% or 312.77 points to close at 119,649.14 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 11 paisas to close at 281.61. In the open market USD was trading at PKR 283.75.

Indian Stocks

Indian stock prices went up on Friday and had a good week as investors felt positive about a peace deal with Pakistan, ongoing trade discussions with the U.S., and hopes that India might lower interest rates.

U.S. President Donald Trump announced on Thursday that India is offering a trade deal with no extra taxes, which helped boost the market. India's trade secretary also confirmed that discussions with the U.S. are going well.

This excitement is driven by strong economic conditions. Leaders in New Delhi believe this is a rare opportunity to make India a bigger part of global trade networks.

BSE-100 index gained 0.05% or 13.64 points to close at 26,173.55 points.

DFM General Index gained 1.05% or 56.64 points to close at 5,455.41 points.

Crude Oil

Oil prices didn’t change much on Friday, but they were set to rise slightly for the week. A better trade relationship between the U.S. and China helped, but expectations of more oil supply from Iran and OPEC+ balanced things out.

Prices had dropped over 2% the day before after President Donald Trump said the U.S. was close to making a nuclear deal with Iran and that Iran had mostly agreed. However, oil prices still depend on supply issues, especially if Iranian oil comes back to the market after any deal is reached.

Brent crude prices decreased by 0.12% to $64.61 per barrel.

Gold Prices

Gold prices dipped slightly on Friday morning as investors moved money into bonds and the U.S. dollar, which have been performing well.

Analysts say this shift caused the drop in gold prices. Since gold recently hit record highs, some investors are now selling to secure their profits.

International gold prices decreased 1.62% to close at $3,172.2 per ounce. In the local market, gold prices increased PKR 900 to 336,100 per tola.