The Pakistan Stock Exchange (PSX) saw a major rally on Thursday, gaining over 2,000 points just a day after the United States announced a 90-day pause on newly imposed tariffs – excluding those on China. The move helped ease global fears of an intensifying trade war and lifted investor sentiment worldwide.
The benchmark KSE-100 index opened on a highly bullish note, soaring by 3,331.01 points, or 2.92%, to reach 112,891.48 at 9:33am, up from the previous close of 114,153.15. However, the initial gains were partially trimmed later in the session, with the index dipping as low as 116,232.29 before stabilizing below the 117,000 mark by noon — still trading in positive territory.
By 12:19pm, the index had recorded a net gain of 2,346.37 points, or 2.06%, standing at 116,499.52.
Market Analysts Weigh In
Mohammed Sohail, CEO of Topline Securities, remarked:
“Following global markets, the PSX opened with a gain of around 3,000 points, equivalent to nearly 2.5%.”
Awais Ashraf, Research Director at AKD Securities, said the temporary relief in tariffs – excluding China – had boosted investor confidence.
“With trade tensions easing, the focus has shifted back to improving macroeconomic fundamentals.”
Ashraf also noted that the recent decline in global oil prices is particularly beneficial for Pakistan, where oil accounts for about 29% of total imports.
“A $10 per barrel drop in oil prices is expected to reduce the import bill by approximately $2.1 billion. This offers significant relief on both inflation and the external account.”
He added that while remittances from Gulf Cooperation Council (GCC) countries are less correlated with oil prices, the broader macroeconomic implications are positive.
Backdrop: Tariff Reversal and Market Reactions
The surge in the PSX comes after U.S. President Donald Trump reversed course on sweeping tariffs less than 24 hours after they had taken effect. While tariffs on Chinese imports were raised sharply – from 104% to 125% – Trump announced a pause in similar measures against other countries.
The initial imposition of tariffs had roiled global markets, fueled recession fears, and prompted retaliatory moves from both China and the European Union. The rollback helped cool tensions and stabilize investor outlook.
Ashraf had earlier warned that escalating U.S.-China trade tensions could slow global growth and dampen sentiment in emerging markets like Pakistan. However, he now sees an opportunity:
“Lower commodity prices, especially oil, and a potential competitive edge due to the new tariff structure could help Pakistan’s external account.”
