KARACHI – In a historic development, the Pakistan Stock Exchange (PSX) witnessed an unprecedented surge on Monday as the benchmark KSE-100 Index crossed the 142,000-point mark for the first time in history. The market gained over 1,100 points in intraday trading, signaling strong investor sentiment and growing confidence in Pakistan’s economic direction.
The latest rally builds on Friday’s momentum when the index jumped 1,644 points, closing at 141,034. Monday’s spike has now propelled the PSX to new heights, reinforcing the bullish trend that has gripped the market in recent weeks.
Key Drivers Behind the Rally
Market analysts attribute the sustained upward trend to a combination of positive factors:
-
Macroeconomic Stability: Improved inflation control, foreign reserves, and exchange rate stability.
-
Policy Reforms: Clarity and consistency in fiscal and monetary policy.
-
Foreign Investment: Growing interest from international investors, particularly after high-level trade deals.
The optimism was further amplified by recent bilateral trade agreements. Pakistan and Iran signed eight MoUs aimed at boosting cooperation in trade, security, legal, media, and labor sectors. The two countries committed to expanding trade volume to $10 billion in the coming years.
US-Pakistan Trade Breakthrough
Adding to the positive market sentiment, Pakistan and the United States finalized a landmark trade agreement on July 31, covering critical sectors like:
-
Energy and oil exploration
-
Information Technology
-
Mineral resources
-
Cryptocurrency
The agreement includes reciprocal tariff reductions and opens the door for joint ventures in oil exploration. US President Donald Trump acknowledged the development on Truth Social, suggesting Pakistan could emerge as a significant oil exporter in the region.
Federal Finance Minister Senator Muhammad Aurangzeb, in Washington for the deal, emphasized that the agreement would create jobs, boost foreign reserves, and strengthen Pakistan’s economic resilience.
Conclusion
With consistent reforms and deepening international cooperation, the PSX rally reflects not just market optimism but a growing belief in Pakistan’s long-term economic trajectory. If stability continues, analysts expect the bullish momentum to persist.