KARACHI: Bulls in Pakistan’s stock market celebrated receiving $1 billion, the first tranche from Saudi Arabia’s bailout package, with the benchmark KSE 100 index gaining 66 points to close at 41,352 against Monday’s loss of 307 points.
The installment eased the pressure on the Pakistani rupee, too, in both the open and inter-bank markets. “Receipt of $1 billion tranche of financial assistance from Saudi Arabia to ease external account crises, recovery in global crude prices, upbeat data on exports, remittances and surging local cement and fertilizer prices played a catalyst role in bullish close at Pakistan Stock Market,” Ahsan Mehanti, Chief Executive of Arif Habib Corporation, said.
Pakistan’s share market was volatile last week as investors continued to remain on the back foot, wary of Morgan Stanley Capital International’s (MSCI) Semi‐Annual Index Review, which was published on November 13. Later during the week, after a confirmation by the Saudi envoy that the Kingdom would release $3 billion in the next few days — from the $6 billion bailout package promised to Pakistan — investors’ confidence was back on track.
On Tuesday, 167 million shares worth Rs7.6 billion were traded on the equity market. “Stocks showed recovery as investors weighed government austerity measures and resistance over IMF terms for a bailout package,” Mehanti said.
However, no major fluctuation was witnessed in the currency market even as dealers said the inflow of the Saudi bailout money had stabilized the market which is trading at Rs134 against the dollar.
“The currency market is under pressure due to a larger gap as compared to the inflows,” Zafar Paracha, General Secretary of Exchange Companies Association of Pakistan, told Arab News.
“The inflow has given moral strength to the bulls as the market was in a depressed mode due to the large gap which the country needs to fill [in terms of its] external payments,” he said.
Even though Finance Minister Asad Umar has declared that “there is no fiscal emergency and balance of payment crisis is over,” the country needs $12 billion to fund its external payment obligations.
“The Saudi assistance has minimized the specter of a further weakness of the Pak Rupee against US dollar and in fact has stabilized the market to large extent,” Malik Bostan, President of Forex Association of Pakistan told Arab News.
“There were talks in the market that Pakistan won’t get anything from KSA but tranche has dispelled the impression. An additional inflow of remaining $2 billion from the KSA in the next two months would strengthen the currency market,” he said.
The first installment from Saudi Arabia received on Monday has strengthened the country’s position in terms of its foreign exchange reserves from $7.48 billion, till November 9, to around $8.4 billion on Tuesday.
Pakistan has been negotiating with its allies -- including KSA, UAE, and China – for monetary assistance to overcome the current account deficit. Prime Minister Imran Khan’s economic managers are also negotiating with the International Monitory Fund (IMF) for another loan to meet the economic challenges. Though the exact quantum of IMF loan has not been determined, the finance minister last week said that the country may need $5 to $6 billion from the global financial body.
Pakistan stock market jubilant as country receives $1bn from KSA
Pakistan stock market jubilant as country receives $1bn from KSA
- Benchmark KSE 100 index gained 66 points to close at 41,352 level
- Receipt of first installment from $6bn Saudi bailout package stabilizes currency, dealers say
Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’
- Pakistan, Saudi Arabia signed strategic defense pact last year pledging aggression against one will be treated as attack on both
- Deputy PM Ishaq Dar says enduring bonds with Islamic and Arab nations form vital pillar of Pakistan’s foreign policy
ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Wednesday that Pakistan’s defense pact with Saudi Arabia elevated its brotherly ties with the Kingdom to “new heights,” stressing that close ties with Arab and Islamic nations form a key pillar of Islamabad’s foreign policy.
Pakistan and Saudi Arabia signed a Strategic Mutual Defense Agreement on Sept. 17 last year, pledging that aggression against one country would be treated as an attack on both, enhancing joint deterrence and formalizing decades of military and security cooperation.
Both nations agreed in October 2025 to launch an economic cooperation framework to strengthen trade and investment ties.
“In the Middle East, our landmark Strategic Mutual Defense Agreement with Saudi Arabia has elevated our brotherly ties to new heights,” Dar said while speaking at the Pakistan Governance Forum 2026 event in Islamabad.
The Pakistani deputy prime minister was speaking on the topic “Navigating International Relations Amidst Changing Geo-Politics.”
Dar noted that Pakistan has reinforced partnerships with other Middle Eastern nations such as the UAE, Qatar, Jordan, Oman, Egypt and Bahrain. He said these partnerships have yielded “concrete agreements” in investment, agriculture, infrastructure, and energy sectors.
“Our enduring bonds with Islamic and Arab nations form a vital pillar of our foreign policy, and we will continue to expand our partnerships across Asia, Latin America, and Africa,” he said.
Dar pointed out that the presidents of Kazakhstan, Uzbekistan and Kyrgyzstan have undertaken visits to Pakistan in recent months, reflecting Central Asian nations’ desire to boost cooperation with Islamabad.
On South Asia, the Pakistani deputy PM said Pakistan has successfully transformed its fraternal ties with Bangladesh into “a substantive partnership.”
“Similarly, the trilateral mechanism involving China, Pakistan, and Bangladesh has been launched with a view to expanding and deepening regional cooperation and synergy,” the Pakistani minister said.
He said Islamabad has strengthened its “all-weather” partnership with China via the second phase of the multi-billion-dollar China-Pakistan Economic Corridor agreement and “unwavering support” from both sides for each other’s core interests.
Dar said Pakistan had also reinvigorated its partnership with the US, advancing cooperation in trade, technology, investment, and regional stability.
“This calibrated approach has enhanced our ability to navigate complexity with skill and confidence, ensuring that our national interests are served without compromising our core foreign policy principles,” he said.
