The stock market remained optimistic on Thursday, when investor mood increased following the announcement of a landmark trade agreement between Pakistan and the United States, in the midst of continued optimism over macroeconomic stability and continuity of the central bank’s policy.
Pakistan Stock Exchange’s (PSX) Benchmark KSE-100 index climbed up to an intraday height of 140,077.85 and got 1618.96 points or 1.17%from the previous end of 138,412.25. The index also affected a low level of 139,369.06, up 956.81 points or 0.69%.
“Positive atmosphere about the US trade agreement is a diplomatic success, especially when people compare higher tasks on Indian exports,” said independent investments and economic analyst Aah Somro.
“The hope is that the US Pakistan partnership will continue to strengthen, leading to financial stability during the IMF,” he added.
In a major diplomatic breakthrough, US President Donald Trump confirmed the completion of a trade agreement between the two countries. Development signalizes a boost in bilateral economic ties at a time when India continues to face high tariffs and geopolitical headwinds due to its energy band with Russia.
According to the Ministry of Finance, the agreement was concluded under Finance Minister Muhammad Aurangzeb’s meeting with the US Trade Secretary and the US Trade Representative. Pakistan’s ambassador to American Rizwan Saeed Sheikh and Trade Secretary Jawad Paul were also present.
A statement from the ministry said the purpose of the agreement is to improve bilateral trade, improve market access, attract investments and strengthen cooperation in energy, minerals, IT and new sectors such as cryptocurrency.
The agreement includes customs reductions on Pakistani exports to the United States and aims to encourage us to invest in Pakistan’s infrastructure and development projects marking a new phase in economic cooperation between the two countries.
Meanwhile, the State Bank of Pakistan (SBP) had its most important political rate unchanged at 11% during Wednesday’s monetary policy committee meeting, referring to persistent inflation risks and pressure on the trade balance.
In his statement after meetings, SBP said the inflation projections were slightly worsened due to unexpectedly high gastariers, but noted that the preaching is expected to stabilize within the target area moving forward.
SBP Governor Jameel Ahmad said at a subsequent press conference that inflation would probably remain between 5% and 7% below FY26, although temporary violations over the top band were possible for a few months. He added that the trade deficit was expected to be expanded when the economic activity was picked up.
On Wednesday, the KSE-100 index won 447.43 points, or 0.32%, to close at 138,412.25, up from 137,964.82 in the previous session. The index affected a high of 139,018.88 and a low level of 137,658.81 during the session.
