KSE-100 Index Hits All-Time High as Power Tariff Cuts Boost Market Sentiment
The Pakistan Stock Exchange (PSX) continued its upward momentum, with the benchmark KSE-100 index jumping by 1,729.48 points, or 1.45%, closing at 120,667.59.
During intraday trading, the index reached a record peak of 120,793.41 points, while the lowest level of the session was 119,085.73 points. The market remained stable within a narrow trading range.
Investor activity was strong, with over 60 million shares changing hands. The total trading value for the day stood at Rs5.12 billion, reflecting healthy market engagement and growing investor confidence.
The rally followed Prime Minister Shehbaz Sharif’s announcement of a 15% reduction in electricity tariffs, decreasing power prices by Rs7.41 per unit. The measure aims to ease financial pressure on households and encourage higher electricity consumption from the national grid.
This tariff relief, which will benefit nearly 40.3 million users—mostly domestic consumers—was made possible through seasonal adjustments, increased subsidies without affecting the budget, and tax relief.
Under the new structure, the average cost per unit for domestic users drops to Rs34.37, while industrial consumers will pay Rs40.51 per unit.
The government managed to secure approval for this reduction from the International Monetary Fund (IMF), despite initial pushback from the lender.
Commercial users will see a maximum relief of 12%, while industrial sectors will enjoy a 13% drop in electricity costs. Protected domestic consumers could see savings of up to 32%, depending on their usage levels.
Meanwhile, across the globe, former U.S. President Donald Trump announced the implementation of new “discounted reciprocal” tariffs targeting various countries, including Pakistan. A 29% tariff was imposed on Pakistani exports to the U.S.
Trump argued the move was necessary to balance trade relations and protect American businesses from what he described as unfair foreign tariffs. According to him, Pakistan’s high tariff rates—reportedly up to 58% on American goods—warranted a strong response.
The United States remains a key trading partner for Pakistan. In 2024, bilateral trade between the two nations totaled $7.3 billion. U.S. exports to Pakistan rose by 4.4% to $2.1 billion, while imports from Pakistan increased by 4.9% to $5.1 billion.
In addition to Pakistan, the U.S. introduced similar tariffs on 40 other countries, with rates ranging from 10% to 50%, as part of broader efforts to correct global trade imbalances and promote fair trade for American industries.
