Pakistan’s automobile, agriculture and equity markets posted strong growth in April, despite persistent geopolitical tensions and mounting inflationary pressures, according to latest economic data.
Passenger car sales surged 106.9% year-on-year in April, while tractor sales jumped 76.3%, supported by a sharp rise in consumer financing. Auto financing increased 36.6% from a year earlier to Rs. 359.6 billion, reflecting sustained demand in the automotive sector.
The fertilizer sector also recorded strong activity, with urea sales rising 84.7% year-on-year despite an increase in prices during the month.
On the macroeconomic front, the State Bank of Pakistan raised its key policy rate by 100 basis points to 11.5% in a bid to curtail inflationary pressures. Average yields on six-month treasury bills in the secondary market stood at 11.5%. Consumer inflation, nonetheless, accelerated to 11.1% year-on-year in April, primarily due to higher domestic fuel prices and adjustments in energy tariffs.
A Topline Securities report noted pressures on Pakistan’s external sector, as the current account recorded a deficit of $324 million amid a higher import bill of $6.9 billion. At the same time, net foreign direct investment inflows fell 69.5% year-on-year to $54.5 million, largely due to a $102 million outflow linked to the cement sector involving investors from Lebanon.
Despite macroeconomic challenges, the benchmark KSE-100 Index gained 9.6% month-on-month in April, supported by investor optimism over diplomatic talks between the United States and Iran aimed at easing regional tensions. The index has delivered a one-year return of 46.4% as of April 2026, reflecting continued investor confidence in Pakistan’s equity market.