The Pakistan Stock Exchange (PSX) continued its upward trajectory on Thursday, buoyed by the announcement of a landmark Pakistan-US trade agreement that boosted investor confidence and lifted the KSE-100 Index to new highs.
The benchmark KSE-100 Index surged 978.17 points, or 0.71%, to close at 139,390.42—up from Wednesday’s close of 138,412.25. The index even touched an intraday high of 139,977.65, marking a gain of 1,565.40 points (1.13%) during the day.
Market analysts attribute the bullish trend to optimism surrounding the Pakistan-US trade agreement, which was finalized during Finance Minister Muhammad Aurangzeb’s high-level meetings with senior US officials, including the Secretary of Commerce and the US Trade Representative.
“This trade deal is not just an economic win, but a diplomatic success,” said independent analyst AAH Soomro. “With India facing steep tariffs, Pakistan’s growing access to US markets gives it a strong competitive edge.”
Announced by US President Donald Trump, the agreement aims to deepen economic cooperation between the two nations by improving market access, reducing tariffs on Pakistani exports, and encouraging US investment in key sectors such as energy, IT, minerals, and even cryptocurrency.
Read More: SBP holds key interest rate at 11%
The Ministry of Finance highlighted that the deal also focuses on infrastructure development and strategic investment opportunities that can significantly benefit Pakistan’s economy in the long run.
Ambassador Rizwan Saeed Sheikh and Commerce Secretary Jawad Paul were also part of the negotiations, underlining the importance Pakistan places on reviving and strengthening bilateral ties.
Adding to the market’s upbeat mood, the State Bank of Pakistan (SBP) decided to keep its key policy rate unchanged at 11% during its latest Monetary Policy Committee meeting. While inflationary pressures from rising gas tariffs were acknowledged, the SBP projected stabilization within a 5% to 7% range for FY26.
SBP Governor Jameel Ahmad confirmed that inflation could briefly cross the upper limit in certain months, but expressed confidence in the broader economic outlook.
The steady monetary stance helped calm market nerves, reinforcing the belief that macroeconomic policies will remain consistent and predictable in the near future.
Thursday’s gains followed Wednesday’s rise of 447.43 points (0.32%) when the KSE-100 closed at 138,412.25. With back-to-back sessions in the green, investor sentiment remains strong amid hopes of long-term economic stability and increased global engagement.
