The Pakistan Stock Exchange (PSX) saw a big rise on Thursday, gaining 1,345 points after a new trade deal between Pakistan and the United States was finalized.
The KSE-100 index, which tracks the market’s top companies, closed at 139,757, up 0.97% from the previous day. This boost came as investors felt hopeful about stronger ties with the US and more foreign money coming into Pakistan.
The trade deal, announced in Washington, includes plans for joint oil development and lower tariffs, exciting investors. Analyst AAH Soomro said, “The US trade deal is a diplomatic success, especially when compared to higher duties on Indian exports. We hope the US-Pakistan partnership grows, leading to economic stability with IMF support.”
The market started strong, hitting a high of 140,215 during the day, though it dipped to 139,083 at one point. Trading was active, with 425 million shares worth Rs 24.9 billion exchanged. Of 476 companies, 152 saw their shares rise, while 290 fell. On Wednesday, the market had already gained 447 points, setting the stage for Thursday’s rally.
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Finance Minister Muhammad Aurangzeb’s recent trip to the US, his second this month, helped seal the deal. He told Dunya News, “The US is Pakistan’s largest trading partner. We want to expand trade in areas like IT, minerals, and agriculture.” The agreement is seen as a step toward long-term investment, with Aurangzeb adding, “We’re moving beyond just trade to bring real change in our economic relationship.”
The positive mood was also helped by Pakistan’s improving economy, with a $2.1 billion surplus this year and an S&P credit rating upgrade to ‘B-‘. However, some caution remains as investors await the State Bank of Pakistan’s policy rate decision on July 30, where a 50-basis-point cut is expected. For now, the trade deal has brought a wave of confidence to the PSX, signaling brighter days for Pakistan’s economy.
