The Pakistan Stock Exchange (PSX) soared to new heights on Friday, hitting an all-time high after the United States slashed import tariffs on Pakistani goods—reigniting investor confidence and signalling a new era of improved US-Pakistan trade relations.
The benchmark KSE-100 Index surged by 1,644.56 points, closing at a record 141,034.98—up 1.18% from the previous day’s close of 139,390.42. During intraday trading, the index peaked at 141,160.93 before briefly dipping to a low of 138,957.70.
This market rally came on the heels of a major announcement by the US government late Thursday night, confirming a revision in import tariffs on Pakistani goods. The revised deal slashes tariffs from 29% to 19%, a 10% drop that experts say will help Pakistan stay competitive in global markets.
“This development is neutral in terms of immediate advantage but strengthens Pakistan’s position against direct competitors,” noted Topline Securities in a research note.
The tariff adjustment is part of a broader agreement praised by both nations. Pakistani officials have lauded it as a breakthrough that not only boosts exports but also strengthens US-Pakistan trade relations, potentially opening the door to deeper investment and strategic cooperation.
Adding fuel to the market momentum, President Donald Trump recently highlighted Pakistan's untapped energy potential, announcing plans for US collaboration to explore the country’s vast oil reserves.
As a result, Pakistan’s top oil refiner, Cnergyico, is gearing up to import one million barrels of crude oil from US-based Vitol this October—marking Pakistan’s first-ever purchase of American oil under the new deal. “This is a historic step forward,” said Cnergyico’s Vice Chairman Usama Qureshi in comments to Reuters.
Another major factor driving Friday’s bullish trend was the State Bank of Pakistan’s decision to hold its key policy rate steady at 11% for the second consecutive time. Contrary to market expectations of a rate cut, the SBP cited ongoing risks of inflation due to rising energy prices, especially gas tariffs. Nonetheless, the central bank maintained that inflation is expected to stabilize in the coming months.
Analysts believe that this combination of economic and policy moves has sent a strong signal to investors. Pakistan is not only securing better trade terms, but also showing signs of monetary stability and long-term growth potential.
