The Pakistan Stock Exchange (PSX) saw a strong rally on Thursday after news broke of a major Pakistan-US trade deal. The development boosted investor confidence and sparked optimism about the country’s economic future.
The benchmark KSE-100 Index jumped to an intraday high of 140,077.85 points. This marked a gain of 1,618.96 points, or 1.17%, from the previous day’s close of 138,412.25. The index’s lowest point during the session was 139,369.06.
Analysts credit the surge to improved diplomatic and economic ties. Independent economist AAH Soomro said the trade deal was a significant achievement. He noted it stood out even more as Indian exports continue to face higher US tariffs.
US President Donald Trump confirmed the agreement had been finalized. Talks were led by Pakistan’s Finance Minister Muhammad Aurangzeb and US trade officials. Also present were Pakistan’s Ambassador to the US and top commerce authorities.
The trade deal is expected to cut tariffs on Pakistani exports to the US. It also opens the door for American investment in sectors like energy, IT, minerals, and cryptocurrency. According to the Ministry of Finance, this move aims to improve market access and enhance trade volume.
Thursday’s jump in PSX followed a smaller gain on Wednesday, when the index rose 447.43 points to close at 138,412.25. That session saw a high of 139,018.88 and a low of 137,658.81.
The market rally also reflects growing expectations that the economy will stabilize. The PSX latest analysis highlights that investors are responding positively to both foreign trade progress and consistent central bank policy.
The State Bank of Pakistan kept its interest rate unchanged at 11% in its recent meeting. It cited inflation concerns but predicted that prices would begin to stabilize in the coming months.
SBP Governor Jameel Ahmad said inflation could stay between 5% and 7% in FY26. However, temporary spikes might occur due to global price movements and rising imports.
Market experts are optimistic about future PSX trading strategies if current trends hold. Many believe this deal may mark the start of sustained upward momentum, as highlighted in the latest PSX progress report.
Learn more about the PSX’s record-breaking rally and the army chief’s support here.
