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Replying to the outgoing champions' 316, the Blues struggled to reach 216 in their last match before taking on Habib Bank in the final at the same venue from Monday.
Pacemen Prince Abbas and Faisal Rasheed reduced the hosts to 114-7 after an opening stand of 54 between Shahzeb Hasan (34) and Karachi Blues skipper Khalid Latif (22).
Asad Shafiq, easily the leading run-getter for the Blues, batted with composure to top-score with 85. The talented right-hander, who struck 14 boundaries in his 145-ball innings, took his aggregate in the championship to 981 runs.
Prince Abbas finished with figures of 4-36 in 21.1 overs, Faisal claimed 3-100 in 21 overs while, slow left-armer Nayyar Abbas took 2-19 including the prized wicket of Asad.
Sialkot further consolidated their position by reaching 97-1 in the second innings to hold an overall lead of 197 runs.
Sui Southern Gas Company (SSGC), bidding to stave off relegation in Group 'A', gained a crucial 40-run lead after dismissing Karachi Whites for 253 in their first innings at the Southend Club Cricket Stadium. But SSGC then lost four wickets in making 63 runs in their second innings.
Our Sports Reporter adds from Lahore Former international Kamran Hussain returned career-best figures of 7-25 as Habib Bank fought back against Lahore Shalimar in the Group 'A' match at the Gaddafi Stadium.
Defending a paltry first-innings total of 141, the bankers bowled out Lahore Shalimar for 149 thanks to Kamran's left-arm pace bowling. Opener Abid Ali fell to former Test paceman Shahid Nazir without adding to his overnight score of 52.
Lahore Shalimar hit back through their strike bowler Mohammad Naved as Habib Bank closed the second day's play at 186-9. Naved has so far captured six for 82.
Lahore Ravi put themselves in a commanding position against Group 'B' rivals Islamabad at the LCCA Ground. After piling up 448 with opener Kashif Siddique (112 off 194 balls, 16 fours and one six), Sohail Ahmed (103 off 188 balls, 13 boundaries) and Asim Naz (71) the main scorers, Lahore Ravi had the visitors from the federal capital tottering at 140-9.
Ex-international Junaid Zia led from the front. The Ravi skipper bowled superbly to take 6-48 in 16 overs.
