PSX sets new record after tariff deal with US

The Pakistan Stock Exchange (PSX) soared to a historic high on Friday after the US announced a notable reduction in import tariffs on Pakistani goods, boosting investor sentiment and signalling a positive turn in bilateral trade relations.

The benchmark KSE-100 Index closed at an all-time high of 141,034.98 points, gaining 1,644.56 points or 1.18% compared to the previous close of 139,390.42.

During intraday trading, the index touched a peak of 141,160.93 points, reflecting a gain of 1,770.51 points, while dipping to a low of 138,957.70 points earlier in the session.

Investor enthusiasm was boosted by Washington’s announcement late Thursday that it had reduced tariffs on Pakistani exports from 29% to 19%, a move that officials say will help level the playing field for Pakistan against regional competitors.

Also Read: US reduces tariff on Pakistani goods to 19%

The revised trade arrangement was lauded by Islamabad as a breakthrough for investment and strategic cooperation. Negotiations for the deal had been ongoing since April.

In a statement, US President Donald Trump said the US was interested in exploring Pakistan’s “massive oil reserves” in partnership with the country.

In a related development, Cnergyico, Pakistan’s largest oil refiner, confirmed plans to import 1 million barrels of crude oil from Vitol in October. The shipment will be Pakistan’s first-ever purchase of US crude, made possible under the revised trade deal, Vice Chairman Usama Qureshi told Reuters.

Another factor fuelling Friday’s rally was the State Bank of Pakistan’s (SBP) decision earlier this week to maintain its key policy rate at 11% for the second straight meeting, defying expectations of a rate cut.