The Pakistan Stock Exchange (PSX) witnessed a dramatic session on Friday as the benchmark KSE-100 index surged over 1,800 points to reach an all-time intraday high of 120,793.41. The bullish sentiment was fueled by Prime Minister Shehbaz Sharif’s announcement of a significant reduction in electricity prices and expectations of improved corporate earnings. However, the rally proved short-lived as the index later reversed its gains, closing 146 points down at 118,938.11.
Despite the overall decline, analysts remain optimistic about Pakistan’s market resilience. Mohammed Sohail of Topline Securities attributed the early rally to hopes of economic stability following the government’s commitment to reducing circular debt and boosting industrial output. Meanwhile, Yousuf Farooq of Chase Securities highlighted that falling crude and coal prices, alongside the possibility of lower interest rates, have further supported investor confidence. However, concerns persist over the potential fallout from newly imposed US tariffs on Pakistani exports, particularly in the textile sector, which constitutes a major share of the country’s shipments to the US.
Global markets faced turmoil as US President Donald Trump announced sweeping tariffs on imports, triggering fears of a worldwide trade war. Major economies, including China, Japan, and the European Union, have vowed retaliation, raising concerns about supply chain disruptions and inflationary pressures. While Pakistan’s direct exposure to the US market is limited, the second-order effects on key trading partners and remittance inflows could pose economic risks. As markets adjust to the shifting global trade landscape, investors are closely monitoring the impact on Pakistan’s economic outlook and business environment.
