KARACHI: Regional instability continues to influence market sentiment, negatively impacting Pakistan’s domestic bond and equity markets and foreign direct investment, all of which declined at the end of FY26. Several economic stakeholders were unsure whether the Gulf turmoil, which has recently paused, could last longer, analysts said. They said all countries, except Israel, hoped for a permanent end to the Gulf war against Iran, but the business community was looking at the situation the other way.