Karachi, August 1, 2025: The Pakistan Stock Exchange (PSX) surged to an all-time high on Friday after the United States officially reduced import tariffs on Pakistani goods, boosting investor confidence and signalling a potential thaw in trade relations between the two countries.
The benchmark KSE-100 Index jumped 1,644.56 points or 1.18%, closing at 141,034.98, up from the previous close of 139,390.42. During intraday trading, the index touched a record high of 141,160.93, gaining as much as 1,770.51 points, before dipping to a session low of 138,957.70.
The rally came after Washington announced a major revision in trade tariffs late Thursday night, slashing the import duty on Pakistani goods from 29% to 19%—a reduction of nearly 10 percentage points. The move is seen as part of broader efforts to strengthen bilateral trade and investment ties.
In a market commentary, Topline Securities noted: “We believe this deal will be neutral to Pakistan and will help the country remain competitive with direct competitors, albeit with no significant advantage over peers.”
The tariff reduction follows months of negotiations that began in April, culminating in what officials from both countries described as a “breakthrough deal.” On Thursday, Pakistani authorities welcomed the development as a step toward enhancing trade flows, attracting investment, and deepening strategic cooperation.
In a significant related development, Cnergyico, Pakistan’s largest oil refiner, is set to import 1 million barrels of crude oil from Vitol in October. Vice Chairman Usama Qureshi told Reuters that this marks Pakistan’s first-ever purchase of US crude, facilitated by the improved trade framework.
The bullish sentiment was further reinforced by the State Bank of Pakistan’s (SBP) decision earlier this week to maintain its key policy rate at 11% for the second consecutive meeting—contrary to expectations of a rate cut.
In its policy statement, the central bank cited persistent inflation risks—particularly from higher-than-expected energy and gas tariff adjustments—but said inflation was still projected to stabilize within the target range in the coming months.
Market analysts expect the upward momentum at the PSX to continue in the near term, particularly if further trade incentives or economic reforms are announced.
