— The Pakistan Stock Exchange (PSX) witnessed a last hour recovery on Monday as the benchmark KSE-100 Index managed to close in the positive zone following a steep fall in early trading.

Heavy selling pressure was witnessed at the opening of the first trading session of the week with the benchmark index falling over 2,000 points. The KSE-100 Index fell to 173,636 points in intraday trading, indicating the cautious mood of investors.

But purchasing demand came back later in the session and the market was able to wipe out most of its losses before the end.

The KSE-100 Index added 124 points to close at 175,927 points by the end of trade against the previous closing level.

The comeback was a bright spot amid a turbulent day of trading. The benchmark index had closed at 175,802 points at the finish of the previous trading session.

Market watchers said the session saw higher volatility as investors reacted to changing market circumstances before bargain hunting helped push the benchmark index into positive territory.

The Pakistan Stock Exchange has had a roller coaster ride in the last few sessions as investors continue to closely follow domestic economic developments, company earnings and global financial factors that could impact market sentiment in the coming days.

A slight decrease in the price of gasoline has been made available to motorists as a result of the announcement made by the federal government about revised prices for petroleum products. However, the rate of high-speed diesel has been dramatically increased.

The Petroleum Division has announced that the price of petrol has been decreased by Rs0.35 per litre, bringing the new retail price down to Rs315.80 per litre. This information was provided in a notification that was published last week.

On the other hand, the cost of high-speed diesel per litre has climbed by Rs5.71 since the previous price increase. The most recent revision has resulted in the new retail price of high-speed diesel being set at Rs360.06 per litre.

The Oil and Gas Regulatory Authority (OGRA) is responsible for conducting periodic assessments of petroleum prices based on international market trends and other important pricing considerations. The revised prices are a reflection of the most recent recommendations provided by the OGRA.

The updated rates for gasoline and diesel will go into effect at twelve o’clock in the morning, according to the Petroleum Division, and they will continue to be relevant until the next planned price revision follows.

Pakistan’s yearly import bill for petroleum products has exceeded the International Monetary Fund’s (IMF) prediction for fiscal year 2025-26 following a dramatic spike in global crude oil prices due to escalating tensions in the Middle East.

The official data showed that the oil import bill in FY2025-26 stood at $16.86 billion, exceeding IMF’s prediction of $15.28 billion by $1.58 billion.

The statistics showed petroleum imports grew 5.76% on-year, as worldwide oil prices surged and the government continued to depend on imported energy to meet domestic demand.

The surge came amid jitters in oil markets over the dispute involving Iran, Israel and the United States and fears over shipping via the Strait of Hormuz, a critical waterway through which almost one fifth of the world’s oil supply passes. The uncertainty sent benchmark crude prices considerably higher in the closing months of the fiscal year, raising Pakistan’s import expenditures.

The IMF has estimated Pakistan’s petroleum import bill to be $16.31 billion for the ongoing fiscal year 2026-27. But analysts say the forecast might be under pressure if geopolitical tensions continue and global oil prices stay high.

The hike in import bill has also been reflected in domestic fuel prices with petrol and high speed diesel touching all time high levels in the past few weeks. The higher energy price is projected to stoke inflation, broaden the country’s import bill and boost demand for foreign currencies.

Pakistan’s economy is extremely sensitive to changes in the international energy prices as it imports the major portion of its crude oil and petroleum products. Along with machinery and edible oil, petroleum is among the country’s biggest imports. Petroleum is core to the trade imbalance and current account balance.

Despite the increasing petroleum import cost, the external sector of Pakistan remained reasonably stable in FY2025-26, aided by record workers’ remittances and tighter import management. But economists warn that a sustained period of high oil prices could make it more difficult to keep the macroeconomy stable and satisfy fiscal and external sector targets established with the IMF.

In official records, Pakistan’s oil imports have been estimated at $16.86 billion in FY2025-26, although the IMF had earlier put the figure at $15.28 billion for the year. The Fund’s revised predictions show imports could stay over $16 billion in FY2026-27, although the actual number will be primarily determined by international oil prices and domestic energy use.