Pakistan and India agree to ceasefire 

Pakistani people flashing victory signs stand over a tank as they celebrate after the ceasefire between Pakistan and India, in Multan on May 10, 2025. (AFP)
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Updated 10 May 2025
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Pakistan and India agree to ceasefire 

  • US secretary of state says two countries had agreed to talks on “broad set of issues at a neutral site”
  • Announcement comes after Pakistan and India launched attacks on each other early morning Saturday 

ISLAMABAD: Pakistan and India both confirmed on Saturday they had agreed to a ceasefire after President Donald Trump said the US had mediated late night talks between the nuclear-armed South Asian nations on the brink of an all-out war.

The announcement came after the Pakistan military said early on Saturday India had attacked three bases in Pakistan with missiles, after which it had targeted multiple bases in India in response, including a missile storage site in India’s north. India said there was limited damage to equipment and personnel at air force stations in the Udhampur, Pathankot, Adampur and Bhuj areas. The military said there were several high-speed missile attacks on several air bases in Indian Punjab, and that India had responded to the attacks.

Five civilians were killed in attacks in the Jammu region of Indian-administered Kashmir, regional police said.

“Pakistan and India have agreed to a ceasefire with immediate effect. Pakistan has always strived for peace and security in the region, without compromising on its sovereignty and territorial integrity,” Pakistani Deputy Prime Minister Ishaq Dar wrote on X.

The Indian ministry of external affairs also confirmed the ceasefire deal in a briefing. 

Separately, Trump said:

“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE. Congratulations to both Countries on using Common Sense and Great Intelligence.”

US Secretary of State Marco Rubio said the two countries had also agreed to talks on a “broad set of issues at a neutral site.”

Earlier on Saturday, Pakistani and Indian officials had both separately said they would consider de-escalation if the other nation reciprocated. 

Through this week, allies and friends like Saudi Arabia, China, Iran and Qatar have offered mediation and urged restraint. The Group of Seven (G7) major countries called on India and Pakistan to engage in direct dialogue while the US government said it had offered assistance in starting “constructive talks.”

Saturday’s military confrontation, the worst fighting between the longstanding enemies in decades, followed days of daily clashing since Wednesday through drones and missiles and gunfighting on the Line of control, the de facto border that divides the disputed Kashmir region between them. At least 50 have been killed on both sides.

The latest tensions were triggered by a militant attack in Indian-administered Kashmir that killed 26 people on April 22. New Delhi said Islamabad was involved, which denied the allegation and repeatedly said it was willing to participate in a transparent and credible inquiry.

Pakistan and India have a history of bitter relations, having fought two of their three wars over Kashmir, a region split between them, since gaining independence from the former British colonial rule in 1947.

Both nations acquired nuclear weapons in 1998.

– Inputs from Reuters


Pakistan stocks hit record as fertilizer sales jump, rate cut hopes build

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Pakistan stocks hit record as fertilizer sales jump, rate cut hopes build

  • KSE-100 jumps 1.5 percent to close above 179,000 points for the first time
  • Stocks start 2026 on a strong note amid broad-based institutional buying

ISLAMABAD: Pakistani stocks extended their rally on Friday, with the benchmark index closing above the 179,000-point mark for the first time, driven by strong fertilizer sales data and expectations of further monetary easing by the central bank.

The KSE-100 index rose 2,679.44 points, or 1.52 percent, to close at 179,034.93, compared with its previous close of 176,355.49, according to data from the Pakistan Stock Exchange (PSX).

Ahsan Mehanti, chief executive officer at Arif Habib Commodities, said buying interest picked up ahead of key corporate earnings due next week, supported by easing inflationary pressures and improving sector-specific data.

“Rupee gains, strong fertilizer sales growth of 34 percent year-on-year in December 2025 and expectations of further policy easing by the State Bank of Pakistan, after headline inflation slowed to 5.6 percent year-on-year, acted as key triggers for bullish activity at the Pakistan Stock Exchange,” he told Arab News.

Fertilizer sales in Pakistan have shown mixed trends in recent months, with overall offtake affected by weak farm economics and seasonal factors. While urea sales declined in some periods, December data showed a sharp rebound, helping lift investor sentiment in the sector.

This has supported fertilizer stocks on the PSX, including Fauji Fertilizer Company, Engro Fertilizers and Fatima Fertilizer, which continue to draw interest due to their market dominance and dividend payouts.

Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company Limited, said investors were positioning for another rate cut amid improving macroeconomic indicators.

“Expectations of another rate cut, strong macroeconomic fundamentals and better corporate results are driving the market,” he said.

Pakistan’s central bank cut its key policy rate by 50 basis points to 10.5 percent last month, surprising markets after maintaining rates unchanged in its previous four policy meetings. Consumer price inflation eased to 5.6 percent year-on-year in December, while prices declined on a monthly basis.

Friday’s close capped a strong start to 2026 for the PSX, with broad-based institutional buying lifting major sectors and reinforcing investor confidence at the beginning of the year.