As investors remained cautious ahead of the monetary policy announcement and amid continued tensions in the Middle East, the Pakistan Stock Exchange (PSX) began the work week on a low note.

From the previous finish of 170,511.85, the KSE-100 index dropped 1,058.78 points to 169,453.07 points, representing a negative move of 0.62%.

The index had intraday highs of 169,830.11 and lows of 168,691.34 during the session.

As investors considered the impending monetary policy announcement and the possible effects of ongoing tensions in the Middle East on financial markets, market mood remained muted.

Today (Monday) is the second meeting of the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) for the current fiscal year.

The committee is anticipated to examine the most recent state of the nation’s economy, paying special attention to inflation, interest rates, economic expansion, and other important financial metrics.

The meeting will decide whether the central bank should keep the current policy rate or change it to reflect the current state of the economy.

he State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) meeting for the current fiscal year will be held today (Monday) in Karachi,

A survey report released by Topline Securities stated that 84 percent of people expected the interest rate to remain unchanged, while 14 percent expressed the hope for an increase of 50 basis points and two percent predicted 100 basis point increase in the interest rate.

The petrol price in Pakistan increased by Rs24 after the last meeting of the Monetary Policy Committee.

The report further stated that the difference between inflation and the interest rate and inflate percentage is more than 250 basis points. 

The committee is expected to review the country’s latest economic situation, with particular focus on inflation, interest rates, economic growth, and other key financial indicators.

The meeting will determine whether the central bank should maintain the existing policy rate or make an adjustment in response to prevailing economic conditions.

According to the monetary policy calendar issued by the State Bank, the Monetary Policy Statement and related information will be released following the conclusion of the meeting.

The first MPC meeting of the current fiscal year was held on July 27, 2026. The decision from today’s meeting is being closely watched by businesses, investors, and financial markets for indications about the future direction of monetary policy.

The federal government on Friday again increased the costs of petrol and diesel. The price of diesel has crossed the Rs400 per liter mark amid fresh hike in the rates of petroleum products.

According to a statement published by the Petroleum Division on Friday, the price of fuel has been hiked by Rs5.02 per liter, which will now cost Rs375.82. The price of high-speed diesel has risen by Rs5.28 a liter to Rs403.32.

According to the notification, the new tariffs will be applied for three days and will be effective from September 12, 2026.

The new revision came a day after the administration increased petroleum prices again. Petrol had increased by Rs3.05 a liter, while diesel was Rs5.37 costlier a liter on Thursday.

A series of hikes have driven up costs of both the major fuels considerably in a short span of time.

In the latest notification, petrol will now be sold for Rs375.82 a liter, compared to its previous pricing after Thursday’s hike, while diesel has crossed the Rs400 threshold for the first time in the latest round of changes.

The new pricing are to be in effect until September 14, when the government can announce another change.