The stock market remained optimistic on Thursday, as investors’ feeling increased after the announcement of a milestone trade agreement between Pakistan and the United States, amid continuing optimism about macroeconomic stability and continuity of the Central Bank.
The Pakistani Stock Exchange (PSX) reference index went up to an intra-group high of 140,215.22, earning 1,802.97 points or 1.3%, from the previous closure of 138.412.25. The index also reached the low of 139,369.06, increasing 956.81 points or 0.69%.
“The positive feeling of the American trade agreement is a diplomatic success, especially when people compare higher duties for Indian exports,” said independent investment and financial analyst Aah Soomro.
“Hope is that the US -Pakistan partnership continues to strengthen, leading to financial stability in the IMF,” he added.
In a major diplomatic discovery, US President Donald Trump confirmed the finalization of a trade agreement between the two countries. Growth marks the impulse of bilateral financial ties at a time when India continues to face high invoices and geopolitical heads due to its energy ties with Russia.
According to the Treasury, the agreement was completed during the meeting of Finance Minister Muhammad Aurangzeb with the US Commerce Minister and the US Commercial Representative. Pakistan’s ambassador to American Rizwan Saeed Sheikh and Commerce Minister Jawad Paul were also present.
A statement from the ministry said that the purpose of the agreement is to boost bilateral trade, improve market access, attract investment, and enhance co -operation in energy, minerals, information and emerging sectors such as encryption.
The deal includes duties for Pakistan’s exports to US exports and aims to encourage US investment in Pakistan’s infrastructure and development projects, noting a new phase of economic cooperation between the two countries.
Meanwhile, the Pakistani State Bank (SBP) held its key policy rate unchanged at 11% during Wednesday’s Monetary Policy meeting, citing persistent risks and inflation pressure on the trade balance.
In the statement after the meeting, the SBP said that inflation forecasts had slightly deteriorated due to unexpectedly high gas invoices, but noted that pricing pressure was expected to stabilize within the range of target moving forward.
Commander SBP Jameel Ahmad, in a subsequent press conference, said inflation would probably remain between 5% and 7% during FY26, although temporary violations above the upper zone were possible in a few months. He added that the trade deficit was expected to expand as the economic activity took.
On Wednesday, the KSE-100 index won 447.43 points, or 0.32%, to close at 138.412.25, from 137.964.82 at the previous session. The index touched the high of 139.018.88 and a low of 137.658.81 during the session.
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