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

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KARACHI: The foreign exchange reserves of the State Bank of Pakistan (SBP) further rose by $19 million to $16.196 billion during the week ended on Feb 13, announced the central bank on Thursday.

However, the rising oil prices amid deteriorating geopolitical tensions in the Gulf could put pressure on the external front as the central bank had repaid $700m to China, which reduced the reserves. Neither the central bank nor the Ministry of Finance confirmed or denied these reports.

Some currency experts said the higher remittances provided enough space to the SBP to buy dollars and maintain the reserves at this level. Recently, the central bank said that the reserves target of $18bn would be met by the end of FY26.

The concerns among the financial experts are the deteriorating situation as Iran is facing the threat of a possible attack by Israel, with the US forces already deployed in the region. Iran has announced the plan to close the Strait of Hormuz, which could halt oil supplies.

The country’s total foreign exchange reserves, including $5.104bn held by commercial banks, stood at $21.301bn.

Meanwhile, the SBP said that inflows through the Roshan Digital Account surpassed $12bn.

Published in Dawn, February 20th, 2026

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GILGIT: Pakistan Telecommunication Authority (PTA) Chairman retired Major General Hafeez Ur Rehman has said the federal government will hold a separate auction of 5G spectrum for Gilgit-Baltistan and Azad Jammu and Kashmir (AJK) within months of the nationwide rollout.

He was speaking during a meeting with GB caretaker Minister for Information Technology Ghulam Abbas in Islamabad on Thursday to discuss the proposed auction and broader connectivity issues in the mountainous region.

Mr Abbas said GB must not lag behind other parts of the country in access to high-speed internet, stressing that impro­ved digital connectivity was vital for e-governance, online education, telemedicine and IT-based businesses. He noted that limited bandwidth and infrastructure gaps had constrained socio-economic development, particularly affecting youth, students, entrepreneurs and the tourism sector.

The PTA chairman said preparations for the auction of additional spectrum were underway. The authority has written to the GB Council, the AJK Council, and the Ministry of IT and Telecom to initiate groundwork for the regulatory framework in both regions.

He said technical testing, regulatory review and spectrum arrangements would require additional time, necessitating a separate auction for GB and AJK. “Our preference as regulator is that spectrum should be provided free of cost in GB and AJK so that operators can invest their capital expenditure in technical infrastructure,” Mr Rehman said.

Amir Shahzad, Director General (Licen­cing) at the PTA, suggested that the GB government follow AJK’s example by abolishing right-of-way (RoW) charges for telecom infrastructure. The federal government has already directed its departments and ministries to provide free access for IT and telecom fibre networks.

The AJK government recently waived RoW charges for IT-related infrastructure across several departments and introduced a one-window facility for no-objection certificates for telecom tower installation and fibre deployment. Applications will be processed by the relevant deputy commissioner’s office within 15 days, and failure to raise objections will be deemed approval.

Officials expect the measures to reduce delays and financial barriers, encouraging faster expansion of broadband infrastructure in AJK.

Mr Abbas told Dawn that he had asked the GB law department to brief him on the region’s RoW policy, adding that he supported abolishing such charges to accelerate internet penetration.

Published in Dawn, February 20th, 2026

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