Pakistan Stock Market Surges Over 2,500 Points Amid Global Tariff Developments
The Pakistan Stock Exchange (PSX) witnessed a significant upswing on Thursday, gaining more than 2,500 points in a single day. The rally came in the wake of a U.S. decision to temporarily halt the implementation of several new tariffs — excluding those targeting China — for a 90-day period.
This surge comes after heightened global financial instability, driven by concerns over an intensifying trade dispute between the United States and China.
The KSE-100 index opened with strong momentum, soaring by 3,331.01 points or 2.92% to hit 112,891.48 at 9:33am, compared to its previous close of 114,153.15.
Despite the positive start, the index faced a temporary decline, dropping to 116,452.12 and fluctuating below the 117,000 mark until 11am. Nevertheless, the market remained in positive territory.
By 11:05am, the index had added 2,620.97 points, reflecting a 2.30% increase, bringing it to 116,774.12.
Mohammed Sohail, CEO of Topline Securities, commented that PSX’s early rally mirrored the upbeat trend in international stock markets. “The market opened up by nearly 3,000 points, close to a 2.5% increase,” he said.
Awais Ashraf, Director of Research at AKD Securities, attributed investor optimism to the U.S. move to ease tariff pressure on countries other than China. “This has redirected investor attention toward Pakistan’s improving macroeconomic indicators,” he noted.
He added that the recent drop in global oil prices is particularly beneficial for Pakistan, an import-reliant economy where petroleum products account for nearly 29% of the total import bill. “A $10 per barrel drop in oil prices could trim Pakistan’s import expenses by approximately $2.1 billion, easing inflationary pressures and improving the external balance,” Ashraf explained.
However, he also pointed out that while oil price changes might impact trade, their link to remittances from Gulf Cooperation Council countries remains minimal.
Just a day earlier, Ashraf had warned that rising U.S. tariffs on Chinese imports had stoked fears of a global economic slowdown, which had dampened sentiment on the PSX.
Nonetheless, he expressed hope that falling commodity prices — particularly oil — along with potential trade advantages stemming from the revised U.S. tariff regime, could support Pakistan’s external financial position.
The dramatic shift in U.S. trade policy came less than a day after hefty new tariffs were imposed on imports from several global partners. These measures had unsettled global markets, heightened recession concerns, and triggered retaliatory actions from both China and the European Union.
President Trump announced plans to increase tariffs on Chinese goods to 125%, up from the 104% level implemented at midnight on Wednesday. Simultaneously, he pledged to reduce tariffs on imports from other countries that were subject to his latest trade crackdown.
