In a dramatic turnaround, the Pakistan Stock Exchange (PSX) witnessed an unprecedented surge on Monday following the announcement of a ceasefire agreement between Pakistan and India. The KSE-100 Index shattered all previous records, climbing 10,072 points to close at a historic 117,247 — the highest level in its history.
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Trading was temporarily halted within minutes of opening, as per PSX regulations, after the KSE-30 Index spiked over 5% by 9:37 AM. Operations resumed at 10:42 AM, with bullish sentiment continuing throughout the session.
Market experts attributed the rally to restored regional stability, renewed investor confidence, and anticipation of economic reforms. In a media briefing at PSX, veteran businessman Arif Habib said, “The world now sees Pakistan’s strength — militarily and economically. India’s false narrative around the Pahalgam incident has collapsed.”
Habib emphasized that Pakistan’s response had not only reasserted its regional position but also restored faith among allies and investors. “The Muslim world and key partners like China have backed Pakistan unequivocally,” he said.
He hinted at forthcoming economic relief from the federal government, especially for industries and salaried individuals, suggesting the upcoming budget may bring substantial policy shifts. “There’s a new momentum. The IMF outlook has slightly improved, interest rates have dropped to 11%, and foreign confidence is returning,” Habib noted.
He also underscored the need for macroeconomic stability and called for a cross-party ‘Charter of Economy.’ “Most political parties support private sector-led growth. This is the time to unite for economic reform,” he said, urging a shift from political rivalry to national consensus.
Habib added that while sectors like real estate remain sluggish, equity markets are now the most accessible and promising investment avenue. “This rally isn’t just numbers—it’s a signal of Pakistan’s rising stature. It’s time for youth and investors to believe in Pakistan’s economic future.”
Just days prior, on May 8, the market had suffered a steep fall of 6,948 points amid geopolitical uncertainty. Monday’s reversal, however, marks a sharp pivot in sentiment — signaling what many hope is the beginning of a sustained economic recovery.
