The Pakistan Stock Exchange (PSX) kicked off the new business week with a historic rally on Monday, as the benchmark KSE-100 Index surged over 1,100 points during intraday trading, crossing the 142,000-point mark for the first time in history.
This strong performance follows last session’s impressive 1,644-point gain, where the index closed at 141,034. The continued upward momentum reflects rising investor confidence, driven by improving macroeconomic indicators, policy consistency, and growing foreign interest.
Market analysts attribute the bullish trend to the government’s pro-market reforms, a stable policy outlook, and recent breakthroughs in international trade and cooperation.
Major Trade Breakthroughs Boost Market Sentiment
Adding to investor optimism, Pakistan and Iran have signed eight agreements and Memorandums of Understanding (MoUs) to strengthen cooperation across multiple sectors and increase bilateral trade volume to $10 billion. These agreements cover areas such as security, civil judicial assistance, animal health, film and media exchange, labor welfare, quality standards, and legal cooperation. A special economic zone is also on the agenda.
The MoU signing ceremony was attended by Iranian President Ebrahim Raisi and Pakistani Prime Minister Shehbaz Sharif, underlining the strategic significance of the partnership.
Landmark Pakistan–US Trade Agreement Finalized
Investor confidence was further bolstered by a landmark trade agreement between Pakistan and the United States, finalized on July 31 during high-level talks in Washington, DC.
Federal Finance Minister Senator Muhammad Aurangzeb led the Pakistani delegation, meeting with US Secretary of Commerce Howard Lutnick and US Trade Representative Ambassador Jamieson Greer. Also in attendance were Pakistan’s Secretary of Commerce Jawad Paul and Ambassador Rizwan Saeed Sheikh.
The agreement includes reciprocal tariff reductions, greater market access for Pakistani exports, and joint exploration of key sectors such as energy, minerals, information technology, and cryptocurrency.
A statement from Pakistan’s Ministry of Finance confirmed that the deal aims to enhance bilateral trade and foreign investment. Notably, it includes provisions for joint exploration of natural resources, particularly oil reserves.
Former U.S. President Donald Trump acknowledged the agreement on Truth Social, stating, “Maybe Pakistan will one day sell oil to India,” while confirming collaboration in selecting an oil company for exploration efforts.
The combination of record market performance and international trade progress marks a promising turning point for Pakistan’s economic outlook.
