The equity market opened lower on Monday as investors booked profits following the index’s record-breaking rally, amid lingering concerns over fiscal slippages and widening external imbalances.

During intraday trading, the benchmark KSE-100 Index reached a high of 169,326.35 points, gaining 336.28 points (0.2%), before dropping to a low of 165,997.36 points, reflecting a decline of 2,992.71 points (-1.77%) from Friday’s close of 168,990.07 points.

“The market, after an extraordinary rally, is now facing selling pressure and resistance levels,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

He added, “Key factors prompting investors to take profits include the recent shortfall in FBR collections, a rising trade deficit, and, to a lesser extent, growing inflation.

So far, the government has not implemented any concrete policy measures to address these challenges.

Coupled with excessive leverage and high borrowing costs, this has encouraged investors to lock in gains.”

According to the latest data, the Federal Board of Revenue (FBR) collected Rs2.88 trillion in the first quarter of FY26, falling short of its Rs3.083 trillion target by Rs198 billion.

In September alone, collections reached Rs1.23 trillion, missing the monthly target by Rs138 billion.

Despite a 13% year-on-year rise, the pace remains insufficient to meet annual revenue goals, and the shortfall even missed the IMF’s conservative target of Rs3.023 trillion.

Meanwhile, the trade deficit widened nearly 46% year-on-year in September 2025 to $3.34 billion, as imports jumped 14% to $5.85 billion and exports fell 11.7% to $2.5 billion, according to the Pakistan Bureau of Statistics (PBS).

For the July–September quarter, the trade gap grew 32.9% to $9.37 billion, driven by rising imports and declining exports.

Economists warned that the trend could pressure the rupee and foreign reserves, complicating debt repayments amid Pakistan’s dependence on external financing.

PBS data also showed the services trade deficit expanding 21.9% year-on-year in August to $437 million, with imports up 13.4% to $1.11 billion, outpacing the 8.4% growth in exports.

Weekly inflation, measured by the Sensitive Price Indicator (SPI), rose 0.56% during the week ended October 2, reflecting renewed price pressures after months of relative stability.

On Friday, the KSE-100 Index had gained 500.44 points, or 0.3%, to close at 168,990.07 points from 168,489.63 points.

The highest index of the day remained at 169,988.62 points, while the lowest level was recorded at 168,613.41 points.