Pakistan Stock Market Rallies as US Trade Deal Sparks Investor Optimism

The Pakistan Stock Exchange (PSX) experienced a bullish trend on Thursday, driven by positive investor sentiment following the announcement of a major trade agreement between Pakistan and the United States. The benchmark KSE-100 Index surged by 1.17%, reaching an intraday high of 140,077.85 points. Analysts attributed the rally to growing confidence in macroeconomic stability and expectations of continued supportive policies from the central bank.

Independent economic analyst AAH Soomro described the US-Pakistan trade deal as a significant diplomatic achievement, particularly as it offers Pakistan more favorable trade conditions compared to India, which faces higher US tariffs. Soomro expressed hope that the strengthened US-Pakistan partnership would lead to greater economic stability, especially under IMF-backed reforms. The deal marks a crucial step in enhancing bilateral relations and boosting Pakistan’s export potential.

The agreement was finalized during a meeting between Pakistan’s Finance Minister Muhammad Aurangzeb, the US Secretary of Commerce, and the US Trade Representative. Pakistan’s Ambassador to the US, Rizwan Saeed Sheikh, and Commerce Secretary Jawad Paul were also present. According to the Ministry of Finance, the deal aims to improve market access, attract foreign investment, and foster cooperation in sectors such as energy, IT, minerals, and emerging technologies like cryptocurrency.

Under the agreement, the US will reduce tariffs on key Pakistani exports while encouraging American businesses to invest in Pakistan’s infrastructure and development projects. This partnership is expected to open new avenues for economic collaboration, providing a much-needed boost to Pakistan’s economy. The deal signals a new phase in US-Pakistan relations, with both nations committed to long-term trade and investment growth.