Business
PSX plunges record 6,683 points on geopolitical fears
KARACHI: Mounting geopolitical tensions and a surge in global oil prices triggered across-the-board panic selling at the Pakistan Stock Exchange (PSX) on Thursday, dragging the benchmark KSE-100 index below the 173,000 barrier and wiping out Rs713 billion in market capitalisation in the first session of Ramazan.
The index suffered its steepest single-day decline in history, closing at 172,170.29, down down 6,683 points or 3.74 per cent after touching an intraday low reflecting a drop of 7,205 points amid relentless selling and extreme volatility.
The sell-off followed a spike in international crude prices, up over 6pc in two days amid fears of supply disruption linked to escalating tensions between the United States and Iran. As a net oil importer, Pakistan is particularly vulnerable to higher energy prices, which intensified macroeconomic concerns and dented investor confidence.
Farid Alam of AKD Securities said investors reacted swiftly to perceived regional instability, citing reports of a possible US attack over the weekend. Pakistan’s geographic proximity and economic vulnerabilities amplified market anxiety, he added.
He noted that heightened domestic political tensions, including sit-ins and roadblocks, further weighed on sentiment.
Mr Alam also referred to data from the Securities and Exchange Commission of Pakistan showing that 125 foreign companies had exited the country, but said a detailed breakdown suggested this did not represent sudden capital flight. Many of the firms were dormant, project-based, or undergoing restructuring. In volatile conditions, he observed, headlines can disproportionately affect sentiment relative to underlying fundamentals.
Addressing speculation about market manipulation, he said broad-based declines of such magnitude are typically driven by sentiment, leverage unwinding and macroeconomic risks rather than coordinated action by large players. He advised small and new investors to avoid panic selling during periods of extreme volatility.
Mohammed Sohail, Chief Executive of Topline Securities, attributed the downturn to reports of delays in the Reko Diq project, aggressive foreign selling and corporate results falling short of expectations.
Market pressure was compounded by persistent foreign corporate outflows, while data showed local insurance companies emerging as major sellers, adding to downward momentum.
Shortened trading hours due to Ramazan curtailed participation and amplified price swings. Trading volume fell 22.17pc to 543 million shares, while traded value plunged 45.26pc to Rs27.39bn.
Index-heavy stocks, including Fauji Fertiliser Company, Engro Holdings, United Bank Ltd, Oil and Gas Development Company, Pakistan Petroleum Ltd and Meezan Bank, collectively erased 2,113 points from the benchmark.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said intense selling pressure erased the previous session’s rebound and reinforced the market’s fragile undertone.
On the corporate front, Faysal Bank reported CY25 earnings of Rs22.5bn (earnings per share of Rs14.80), down 6pc year-on-year. Quarterly profit stood at Rs6.5bn, up 83pc year-on-year and 17pc quarter-on-quarter. The bank announced a cash dividend of Rs2 per share, taking its total CY25 payout to Rs6.5 per share.
Financial and technical analyst Khalid Saifuddin said the market had already priced in most positive triggers and scaled historic highs, leaving it vulnerable to correction. With the results season largely over, conditions were ripe for exhaustion, he remarked, describing the earlier rally as a “bull trap” and Thursday’s fall as a release of built-up pressure.
He said political uncertainty, cross-border tensions and heightened regional risk perceptions, particularly linked to US-Iran developments, had amplified volatility. Investors were also closely watching the outcome of the prime minister’s engagement with US leadership, as ambiguity over Pakistan’s geopolitical positioning tends to unsettle markets.
Regarding upcoming external payment obligations, including a maturing Eurobond in April, he said such factors typically act as volatility catalysts and are often discounted in advance through price action.
Analysts expect the 172,000-170,000 range to serve as critical support, while 180,000 has emerged as immediate resistance for any meaningful recovery attempt.
Published in Dawn, February 20th, 2026
Business
OGDCL makes discovery in Sindh
ISLAMABAD: The state-owned Oil and Gas Development Company Ltd (OGDCL) on Thursday announced a gas and condensate discovery at its Dars West-3 well located in Tando Allah Yar district of Sindh.
“During testing, Dars West-3 flowed at a rate of 9.70 million standard cubic feet per day of gas along with 580 barrels per day of condensate at a choke size of 36/64 inches,” the company said in a statement.
Pipeline laying is currently underway to connect the well to the KPD-TAY processing plant. Upon completion, the produced gas will be processed and injected into the SSGCL network, contributing to the national energy supply.
Published in Dawn, February 20th, 2026
Business
Govt to honour net-metering requests filed before Feb 8 under old rules
ISLAMABAD: To salvage government credibility, Power Minister Awais Leghari on Thursday decided to honour all applicants of net-metering solar connections till the change of regulations on Feb 8 and directed electricity distribution companies (Discos), including K-Electric, for its implementation.
At a meeting of the Power Division’s attached entities, the minister was informed that 5,165 consumers had applied for net-metered connections by the cut-off date of Feb 8 — the day the National Electric Power Regulatory Authority (Nepra) notified the Prosumers Regulations 2026, replacing the net-metering framework with net billing and negatively affecting rooftop solar economics for households and industry.
All these applications entailed a net-metering capacity addition of about 250.8 megawatts.
“All net metering applications minister on commerce and industry. He was later sworn in as the provincial minister for agriculture and cooperatives.
Meanwhile, Sardar Bhootani continued his legal fight and filed a petition against the ECP’s decision in the FCC. The court, after prolonged hearings, accepted the petition of Sardar Bhootani and reserved its verdict.
A day before the FCC was set to announce its verdict, Mr Zehri tendered his resignation. The next day, the FCC suspended Mr Zehri’s notification as the returned candidate from the Balochistan Assembly PB-21 constituency.
Later, the ECP issued a notification de-seating him as an MPA.
As a minister, he had differences with CM Bugti and, after resigning, accused the chief minister of interfering in his constituency.
Published in Dawn, February 20th, 2026
Business
Food exports hit steep decline as imports surge
ISLAMABAD: Pakistan’s food import bill surged to $5.502 billion during the first seven months of the current fiscal year, marking a 19.27 per cent increase from $4.613bn in the corresponding period last year, largely driven by higher arrivals of sugar and edible oil.
In contrast, exports of raw food items plunged 35.21pc to $2.988bn in 7MFY26, compared with $4.613bn a year ago. Export volumes declined across nearly all major food categories, except meat. The steepest decline was recorded in rice exports, including both basmati and non-basmati varieties.
The increase in food imports underscores the country’s growing dependence on foreign supplies amid persistent domestic production and supply constraints. The surge was largely fuelled by higher purchases of sugar, edible oil and tea to meet local demand.
According to data released by the Pakistan Bureau of Statistics, palm oil accounted for the largest share among imported food items, followed by pulses, tea, soyabean oil, and sugar.
Pakistan imported 308,741 tonnes of sugar during the July-January period, representing an unprecedented year-on-year increase of 13,494.93pc, up from 2,271 tonnes in the same period last year.
In terms of value, sugar imports rose sharply to $174.614m, up from $2.181m in 7MFY25, a surge of 7,906.15pc, according to official trade data.
The dramatic rise comes in response to the government’s decision to allow sugar imports in a bid to address domestic shortages and stabilise market prices. Retail sugar prices have been fluctuating between Rs160 and Rs190 per kg in various cities, prompting authorities to step in and ease supply constraints through imports.
The value of palm oil imports surged 24.69pc to $2.350bn in 7MFY26, up from $1.885bn a year ago. In terms of quantity, import of palm oil rose 15.63pc to 2.182m tonnes from 1.887m tonnes in the corresponding period last year. This growth indicates higher consumption of edible oil and ghee in Pakistan.
However, the arrival of pulses fell 21.89pc to $492.095m from $630.019m in 7MFY25. Similarly, soyabean oil imports plunged 42.27pc to $94.991m from $164.550m.
The import bill for all other food items rose 34.37pc to $1.672bn.
Published in Dawn, February 20th, 2026
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