Pakistan Markets Slip as Karachi Raises Flour Prices

Overview

• The Karachi benchmark KSE-100 fell about 300 points on the most recent trading day and lost roughly 6,000 points over a three-day stretch, wiping out about Rs 516.8 million in market value and leaving 40.84 percent of listed shares lower.
• Market reports linked the selling to investor anxiety after US statements about Iran that raised fears of higher global crude oil prices and the potential for faster inflation and a larger import bill.
• Local precious-metals markets reversed earlier gains as 24‑carat gold dropped by about Rs 1,400 per tola and 10‑gram gold fell by Rs 1,200, while silver rose modestly and international gold eased by roughly $14 per ounce.
• Karachi’s city administration issued a formal notification raising wholesale and retail flour rates—regular wholesale to Rs 122/kg and regular retail to Rs 125/kg—and ordered shopkeepers to prominently display the official rates with legal action for violations.
• Because Pakistan imports much of its energy, further oil-price increases could feed into broader inflation, raise the import bill and pressure external accounts, making continued market volatility and tighter consumer-price measures likely in the coming days.