The Pakistan Stock Exchange (PSX) surged past the 141,000 barrier on Friday after Pakistan signed a major trade deal with the United States. The deal includes a new, lower tariff on Pakistani exports, which lifted investor confidence. After a shaky start, the KSE-100 index regained momentum and closed at 141,034.98 points. This marks a strong rebound after recent market volatility.
Earlier in the day, the index dipped by 433 points due to selling pressure. However, it recovered by midday, rising 483 points to reach 139,873. The upward trend continued throughout the session. In total, the index rose by 1,644.56 points, or 1.18 per cent, by closing. Investors responded positively to the trade developments and renewed optimism about export growth.
The boost came after a Pakistani delegation, led by Finance Minister Muhammad Aurangzeb, concluded trade talks in Washington, DC. The agreement was finalized late Wednesday night. Although exact figures were not disclosed, the finance ministry confirmed a 19 per cent tariff on Pakistani exports to the US. This rate is expected to help Pakistan stay competitive in global markets.
The ministry called the outcome a “balanced and forward-looking approach” by the US government. It emphasized that this tariff reduction would directly benefit key export industries. Pakistan’s textile sector, which forms the backbone of its export economy, is expected to gain the most. Officials believe the move could lead to stronger trade ties with the US.
In a related development, US President Donald Trump announced support for Pakistan in developing oil reserves. This statement added to the positive sentiment in the market. Together, the lower tariff and US investment promises have fueled investor confidence. Analysts expect this momentum to continue if the economic and political climate remains stable.