ISLAMABAD: The Pakistan Stock Exchange (PSX) bounced back strongly on Friday as investor confidence returned amid calls from the United States and the United Nations for de-escalation of India-Pakistan tensions over Kashmir, traders and analysts said, with the market gaining more than 2,500 points during the intraday trade.
Relations between the neighbors have plummeted after India accused Pakistan of backing an attack in Kashmir that killed 26 tourists on April 22. Islamabad denies the accusation.
The benchmark KSE-100 index gained 2,787.36 points, or 2.5 percent and closed at 114,113.93 on Friday, compared to the previous day’s close of 111,326.57 points.
Stock analysts attributed the bullish sentiment to calls from the UN, US and other countries to de-escalate tensions between the two countries and offers to mediate the crisis.
“Stocks showed sharp recovery after the US and the UN urged Pakistan and India to defuse tensions,” Ahsan Mehanti, CEO of Arif Habib Group, told Arab News.
“Reports of 0.3 percent year-on-year Consumer Price Index (CPI) inflation for April 25 likely to further ease SBP [State Bank of Pakistan] policy and expected receipt of IMF tranche [of $1 billion] this month played catalyst role in record bullish activity at PSX.”
Pakistan is currently navigating an economic recovery program under a $7 billion International Monetary Fund (IMF) program.
But tensions with India over Kashmir saw the Pakistani stock market shedding over 3,500 points on Wednesday. The US State Department said it was in contact with India and Pakistan, while State Secretary Marco Rubio on Wednesday held telephonic conversations with Prime Minister Shehbaz Sharif and Indian Foreign Minister Subrahmanyam Jaishankar in a bid to ease tensions.
The UN has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, this week repeated its call on both sides to “exercise restraint.”
Saudi Arabia has said Riyadh is trying to “prevent an escalation,” while Iran has offered to mediate the crisis.
“The developments over the weekend are likely to be closely watched and will dictate whether today’s bounce spills over into next week also,” Raza Jafri, head of research at Intermarket Securities, told Arab News.
Pakistan stocks rebound as investor confidence steadies amid calls to ease India tensions
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Pakistan stocks rebound as investor confidence steadies amid calls to ease India tensions
- Tensions with India flared after New Delhi accused Pakistan of backing the April 22 Kashmir attack that killed 26
- Analysts say weekend diplomacy and regional signals will determine if Friday’s market gains hold next week
Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says
- State Bank says farm lending rose 16 percent year-on-year to Rs2.58 trillion
- Inflation eased to 5.8 percent in January as GDP growth hits 3.7 percent in Q1 FY26
KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase from the previous year, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC).
Agricultural financing is considered critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a large share of the workforce. The government has repeatedly emphasized expanding credit access to small farmers as part of broader efforts to boost productivity, stabilize food supply and support economic recovery under an IMF-backed reform program.
According to official data shared at the meeting, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1,412 billion in agricultural loans, while the number of borrowers increased to 2.97 million.
“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting an annual growth of 16 percent,” the State Bank governor said, according to a statement issued after the meeting.
He added that Pakistan had regained macroeconomic stability and that the economy was moving toward sustainable growth.
The governor said GDP growth in the first quarter of FY26 stood at 3.7 percent, while full-year growth was projected between 3.75 percent and 4.75 percent.
He also noted that headline inflation had declined to 5.8 percent in January 2026.
The committee reviewed measures to further expand credit access, including greater use of the central bank’s Zarkhez-e scheme to facilitate agricultural lending. Members also discussed promoting electronic warehouse receipt financing to enhance post-harvest liquidity and reduce distress sales of crops.
The statement said the purpose of electronic warehouse receipt financing was to “reduce forced sales of crops and strengthen linkages within the agricultural market.”
Agricultural lending has been a focus of Pakistan’s financial inclusion strategy, particularly as policymakers seek to improve rural incomes, stabilize food prices and strengthen export-oriented crop production amid broader economic reforms.
