The Pakistan Stock Exchange (PSX) saw a significant uptick on Thursday following the announcement of a landmark trade deal between Pakistan and the United States. Investor sentiment surged as market participants responded positively to the news, signaling optimism for the future of economic ties between the two nations.
On July 31, 2025, the KSE-100 Index of the Pakistan Stock Exchange (PSX) surged by 978.17 points, or 0.71%, closing at 139,390.42 points. During the session, the index reached an intraday high of 139,977.65 points, up 1,565.40 points, or 1.13%, before settling at a relatively high point of 139,369.06, which was still up by 956.81 points or 0.69% from the previous day.
The market’s positive response follows the finalization of a trade agreement between Pakistan and the United States. The agreement includes tariff reductions on Pakistani exports to the US and promises stronger cooperation in critical sectors such as energy, minerals, IT, and emerging fields like cryptocurrency. This deal is expected to attract greater US investment in Pakistan’s infrastructure and development projects, giving a fresh boost to the country’s economic outlook.
Independent investment analyst AAH Soomro described the trade agreement as a “diplomatic success” and pointed out that it comes at a time when India faces mounting tariffs on its exports to the US, further highlighting the strength of the Pakistan-US partnership. Soomro also noted that the growing bilateral ties could lead to increased economic stability, especially with the support of the International Monetary Fund (IMF).
In addition to the trade agreement, the State Bank of Pakistan (SBP) maintained its key policy rate at 11% in its latest monetary policy meeting, balancing concerns about inflation with the need for stability in the trade balance. SBP Governor Jameel Ahmad suggested that while inflation might remain within the 5%-7% range for FY26, temporary breaches could occur in some months. The central bank’s approach further boosted market confidence, contributing to the day’s gains on the PSX.
