Pakistan Stock Market Soars to Historic High

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The Pakistan Stock Exchange (PSX) reached a historic milestone on Friday as its benchmark KSE-100 Index closed above the 141,000-point level for the first time in its history. The index climbed by 1,644.56 points, a 1.18% gain, ending the session at 141,034.98.

Analysts attributed the surge to growing investor optimism driven by recent developments in trade relations between Pakistan and the United States. A new agreement reportedly includes favorable tariff adjustments, boosting expectations for improved market access for Pakistani exports.

The stock market rally saw broad-based participation, with notable gains in the financial and industrial sectors. Market analyst Ammar Khan commented that the sharp rise reflected “renewed confidence in Pakistan’s economic trajectory” and that supportive trade policy measures could lead to “sustained foreign capital inflows.”

The positive momentum also benefited from stable exchange rates and a declining inflation trend, both of which have eased concerns over macroeconomic pressures. Increased foreign portfolio interest in the PSX was also noted, with institutional investors reacting to signs of improving bilateral cooperation.

Pakistan’s equity market performance comes amid cautious optimism about the country’s economic recovery. While structural challenges persist, such as managing public debt and implementing reforms, the strong performance offers a temporary boost to investor sentiment.

The KSE-100 Index, a widely followed measure of market sentiment in Pakistan, serves as a key indicator for domestic and international investors. Friday’s performance underscores the potential for recovery when supported by clear trade policy and financial stability.