KARACHI: Pakistan’s stocks rose more than 9 percent, the highest single-day gain in decades, and its international bonds rallied on Monday, analysts said, following a ceasefire with India and the approval of $1 billion tranche by the International Monetary Fund (IMF).
The Pakistan Stock Exchange (PSX) suffered losses in the last three sessions since India struck multiple Pakistani cities with missiles on Wednesday. Pakistan responded with fighter jet, drone and artillery strikes and four days of conflict between the two sides came to a halt on Saturday evening after the United States announced a surprise ceasefire.
On Monday, the benchmark KSE-100 index rose by 9.45 percent, or 10,123 points, to close at 117, 297 points, compared to Friday’s close of 107,174 points. The country’s currency and international bonds also surged, paring their losses since tensions rose with India over an attack in Indian-administered Kashmir on April 22.
“The highest single-day gain in almost three decades comes after the ceasefire announcement of India and Pakistan,” Shankar Talreja, head of research at Karachi-based Topline Securities brokerage firm, told Arab News.
The KSE-30 index, which includes the top 30 most liquid companies, increased about 9.7 percent during the intraday trade, forcing the bourse to halt trading at 9:37am Pakistan time for an hour.
The geopolitical tensions had led to aggressive selloffs and fueled widespread investor concerns at the bourse which lost more than 12 percent between April 22 and May 8.
Monday’s rally triggered the upper circuit breaker for the second time in the PSX’s history since July 2023, according to Adnan Sami Sheikh, an analyst at Pakistan Qatar Investment Company Ltd. The otherwise risk-averse investors went on a buying frenzy primarily on the back of a US-brokered ceasefire agreement between India and Pakistan.
“Local individual investors who had been net sellers in the recent past were aggressive buyers,” Talreja said, adding that according to Bloomberg-compiled data, PSX had become the world’s third best performing stock index over the last one year.
The other factor behind Monday’s rally was the IMF’s approval of $1.4 billion loan to Pakistan under its climate resilience fund, and the release of a $1 billion as part of the country’s $7 billion bailout program secured in Sept. last year, taking the total disbursements under the program to $2.1 billion, according to analysts.
The much-awaited inflows will boost the cash-strapped nation’s foreign exchange reserves, which Islamabad seeks to increase to $14 billion by June. The IMF, which the once-near-default Islamabad has visited frequently in recent years, wants Pakistan to hold enough dollars for at least three months of imports.
PAKISTANI RUPEE AND BONDS
Pakistan’s currency marked the first gain in the last seven sessions this month and rose 0.1 percent, with the US dollar closing at Rs281.57, according to the State Bank of Pakistan.
The rupee had devalued 0.3 percent since last month, when Pakistan’s now-de-escalating border tensions with India had first resurfaced.
The South Asian nation’s global bonds also rallied sharply and rose as much as 5.7 cents globally, Reuters news agency reported, citing Tradeweb data. Most of the bond maturities have clawed back the losses sustained since April 22.
“The investors are now perceiving lower country risk premium for Pakistan,” Talreja added.
Commenting on the developments, Pakistan’s finance adviser Khurram Schehzad said the South Asian nation has much more to offer.
He said positives like the IMF board’s approval, declining interest rate, spillover effect of a potential settlement of the US-China tariff issue, and Pakistan’s “measured and responsible” response in terms of narrative and the actions on ground against India have caught the attention of investors.
“Renewed investor confidence...enhanced IMF funding and support, renewed regional investor interest, one of the lowest inflation rates and stable currency parities in the region all position Pakistan for a more meaningful economic upside moving forward,” he said.
Pakistan stocks record single-day gain, bonds rally after ceasefire with India, IMF tranche approval
https://arab.news/wm7tv
Pakistan stocks record single-day gain, bonds rally after ceasefire with India, IMF tranche approval
- Pakistan and India last week traded air, ground and drone strikes, leading to aggressive selloffs by investors
- On Monday, Pakistani rupee marked first gain since the start of May as Pakistan’s dollar bonds rose 5.7 cents
Pakistan hikes petrol price by Rs5.36, diesel by Rs11.37 per liter
- Petrol now costs Rs272.15 per liter while HSD has risen to Rs284.35
- The OGRA-recommended prices will remain valid till the end of July
KARACHI: Pakistan’s government has increased the price of petrol by Rs5.36 per liter and high-speed diesel (HSD) by Rs11.37 per liter for the next fortnight, the Finance Division announced late Tuesday.
The revised prices took effect from today, July 16.
According to the official notification, petrol now costs Rs272.15 per liter, up from Rs266.79, while HSD has risen to Rs284.35 per liter from the previous Rs272.98.
“The Government has revised the prices of petroleum products for the fortnight starting tomorrow, based on the recommendation of OGRA [Oil and Gas Regulatory Authority] and the relevant Ministries,” the Finance Division said in its statement.
Fuel prices in Pakistan are adjusted every two weeks and are influenced by global oil market trends, currency fluctuations and changes in domestic taxation.
The increases have a direct impact on inflation, raising production and transportation costs and driving up the prices of essential goods and services, particularly food. The effect is further amplified by Pakistan’s reliance on imported fuel.
This marks the third consecutive increase in fuel prices. On June 16, the government raised petrol by Rs4.80 per liter and HSD by Rs7.95. Another hike followed on July 1, with petrol up by Rs8.36 and HSD by Rs10.39.
Fuel price volatility escalated last month during the 12-day conflict between Iran and Israel, when Pakistan instructed oil marketing companies to maintain mandatory reserve levels.
While the government ruled out supply shortages, the conflict triggered concerns about a potential disruption in oil flows through the Strait of Hormuz.
Senior Pakistan general pledges deeper strategic ties with China at PLA anniversary
- General Sahir Shamshad Mirza commends Beijing for turning China into a ‘pillar of peace and stability’
- He reiterates ‘unwavering commitment’ to ensuring security of Chinese nationals working in Pakistan
KARACHI: Chairman Joint Chiefs of Staff Committee (CJCSC) General Sahir Shamshad Mirza on Tuesday reaffirmed Pakistan’s commitment to further strengthening ties with China, while addressing a ceremony marking the 98th founding day of the People’s Liberation Army (PLA), according to an official statement.
Islamabad and Beijing are long-time allies and have jointly pursued multibillion-dollar infrastructure, energy and regional connectivity projects under the China-Pakistan Economic Corridor (CPEC), a flagship initiative of China’s Belt and Road Initiative (BRI). The corridor provides Beijing with direct access to the Arabian Sea through Pakistan’s Gwadar port, while enabling Islamabad to modernize infrastructure and boost regional trade.
The two countries also maintain close cooperation in defense and security. Earlier this month, India’s Deputy Army Chief, Lt. Gen. Rahul Singh, claimed China had provided Pakistan with “live inputs” during a four-day military conflict with India in May. Pakistan’s Defense Minister Khawaja Asif, in an exclusive interview with Arab News last month, described the outcome as a “victory” that was entirely “Made in Pakistan.”
“In his address, the CJCSC highlighted the enduring and time-tested ‘Iron-clad brotherhood’ between Pakistan and China, with shared resolve to broaden and deepen this unique relationship across all domains,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement.
“He commended PLA’s pivotal role under the visionary leadership of His Excellency President Xi Jinping for China’s remarkable development and rapid modernization, which has transformed People’s Republic of China into a key pillar of peace, stability and prosperity,” the statement added. “CJCSC highlighted China as a stabilizing factor in the regional security dynamics.”
The event, held in Rawalpindi, was attended by a wide cross-section of civilian and military officials, diplomats, media representatives and business leaders.
General Mirza also reiterated Pakistan’s “unwavering commitment” to ensuring the security of Chinese nationals working in the country.
Thousands of Chinese citizens are employed across dozens of CPEC-linked projects, many of which are located in volatile regions such as Balochistan and Khyber Pakhtunkhwa, where separatist and militant groups have repeatedly targeted foreign workers.
Chinese nationals have also come under attack in Karachi, Pakistan’s largest city and commercial capital, prompting authorities to implement tighter security protocols.
Former Pakistan PM’s ex-wife Reham Khan launches Pakistan Republic Party
- Reham describes move as ‘national mission’ to restore hope and dignity for Pakistanis
- She came into the spotlight after marrying former prime minister Imran Khan in 2015
ISLAMABAD: Reham Khan, ex-wife of jailed former prime minister Imran Khan, on Tuesday announced the launch of a new political party — the Pakistan Republic Party — aimed at representing women, farmers and other marginalized groups.
A journalist by profession, Reham first entered the political spotlight in January 2015 after marrying the cricketer-turned-politician, who was then chairman of the Pakistan Tehreek-e-Insaf (PTI).
She was allegedly involved in behind-the-scenes politics that sparked controversy within PTI, with some senior party members uncomfortable with her presence and eventually sidelining her from party affairs.
The couple divorced less than a year later, with Reham later claiming that political pressure contributed to the split.
“Today, I am sharing the name [of my party] with you, InshAllah, Pakistan Republic Party, which would speak of a republic, where there will be no room for mob behavior, where horizontal leadership will be spoken about, and where those with working experience, what we call ‘lived experience’ in English, will be given representation,” she said at a press conference at the Karachi Press Club.
She pledged to push for legal reforms that improve the lives of ordinary citizens — especially women and farmers — and called for policies that reflect the public’s real struggles.
Reham described the initiative as a national mission rather than just a political movement, focused on restoring hope, dignity and meaningful representation.
“This is a party for the public,” she later said in a post on X. “I will involve you, the public, in the manifesto, the direction, the operating structure.”
“Already been connected to amazing people that you & I have never heard of, but they have been doing great work in their hometowns,” she continued. “These fresh faces will decide how to proceed.”
The announcement comes as PTI begins a 90-day “do or die” protest movement calling for Imran Khan’s release. The former premier remains in jail on multiple charges he says are politically motivated.
Earlier this month, Zulfiqar Ali Bhutto Jr., grandson of the late former prime minister Zulfiqar Ali Bhutto, also announced plans to form a political party focused on farmers’ rights.
Pakistan’s new federal force sparks fears of political repression ahead of Khan party protests
- The Pakistani government says new force should not be mistaken for federal police, calls the move an ‘administrative necessity’
- Analyst says it remains to be seen how the new force will operate nationwide, given that law and order became a provincial subject
ISLAMABAD: Pakistan’s transformation of the Frontier Constabulary (FC) border paramilitary force into a federal force ahead of planned protests by jailed former prime minister Imran Khan’s party this week sparked fears of political repression in the country, with opposition members and analysts saying the new nationwide force could be used as a “tool to suppress political opponents.”
Pakistan’s President Asif Ali Zardari allowed the government to turn Frontier Constabulary into the national security force, called Federal Constabulary, through an ordinance on Monday in order to support law enforcement agencies and to address evolving security challenges across the South Asian country.
The paramilitary force was initially formed to uphold law and order in border and frontier regions, according to the ordinance. However, the evolving conditions, marked by frequent emergencies, natural disasters, civil disturbances and other emerging risks, created the need for a more flexible and capable force to effectively respond to these challenges.
The move has raised concerns among opposition parties, particularly Khan’s Pakistan Tehreek-e-Insaf (PTI), which fears that the new force could be used as a means of political repression amid its 90-day anti-government protest movement, announced on July 13.
“From the looks of it, it’s a safe assumption that such laws are being inflicted, just ahead of political movement announced by PTI, as a tool to suppress political opponents,” Syed Zulfiqar Bukhari, a close Khan aide, told Arab News.
Pakistan ranks as the second-most affected country by militancy, according to The Global Terrorism Index 2025. Militancy-related deaths surged by 45 percent, rising from 748 in 2023 to 1,081 in 2024, marking one of the steepest global increases. The attacks in Pakistan more than doubled, from 517 in 2023 to 1,099 in 2024.
The new duties of the Federal Constabulary, whose cadres were previously recruited only from tribes in the northwestern KP province, will include internal security, riot control and counter-terrorism.
The government’s move to transform the force came ahead of planned protests by Khan’s PTI on Aug. 5, the second anniversary of his arrest. Several such protests by the party since Khan’s brief arrest in May 2023 have turned violent, in some cases paralyzing the capital Islamabad for days.
In the near future, PTI’s Bukhari said, it would be clear if the law was being introduced to, in fact, address security challenges or to stop any political movement that could endanger the existence of the “current, so-called democracy.”
“The new force should not be used as a gimmick to silence political opponents as has been previously witnessed, when the government applied such laws against a large number of the PTI leadership and supporters,” he added.
Khan’s party has been protesting to secure to secure his release and an audit of the Fed. 2024 general election, which it says was rigged to benefit its opponents. Pakistan’s election authorities deny the allegation, while the government accuses Khan’s party of attempting to disrupt its efforts to achieve sustainable economic growth through violent protests.
Ali Imtiaz Warraich, the PTI parliamentary leader in the Punjab Assembly, said “crushing the public mandate” would never result in stability of the country.
“Federal and Punjab governments’ only focus is PTI and all actions taken are only PTI-centered,” he told Arab News, adding that it had not worked in past, nor would it work in future.
However, Pakistan’s Minister of State for Interior Talal Chaudhry said the Federal Constabulary should not be mistaken for a federal police force.
“It will continue to function as a constabulary as the restructuring and renaming are solely aimed at strengthening internal and national security,” he said this week, adding the overhaul was institutionally essential to enhance coordination, improve compensation and build operational capacity of the force throughout all provinces and territories.
“This is entirely a defense-oriented initiative intended to reinforce national security by supporting law enforcement agencies,” he added.
Chaudhry stated the restructuring was also an administrative necessity as despite its significant contributions, the force had long been overlooked and continued to function with limited salaries and benefits compared to other security forces in Pakistan.
“Its transformation into a federal force is to eliminate existing disparities by upgrading its structure and scope under the new title,” he said, adding the reorganization was aimed at ensuring that FC personnel receive salaries, training and benefits at par with other national security forces.
Under the new federal framework, FC’s jurisdiction would extend across all four provinces as well as Gilgit-Baltistan and Azad Jammu & Kashmir, according to the minister.
“While continuing to perform its duties under this redefined structure, the Federal Constabulary will build on its longstanding role in combating drug trafficking and smuggling and in assisting civil law enforcement during sensitive occasions such as Muharram, general elections and anti-polio campaigns,” he said.
Arab News spoke to some analysts about the government’s move, who voiced concerns about the timing, intent and potential misuse of the new force.
“There is always a risk of such a force being misused in Pakistan,” Ahmed Bilal Mehboob, president of the Islamabad-based think tank Pakistan Institute of Legislative Development and Transparency (PILDAT), told Arab News.
“The Frontier Constabulary was already under federal control, so it’s unclear why this transformation was necessary, especially at a time when the country’s major opposition party has announced a protest movement.”
Ather Kazmi, an analyst and political commentator, said the urgency with which the revamp was carried out through an ordinance had raised many eyebrows.
“Although the government claimed it was an administrative necessity, its timing and urgency have led PTI and others to believe it has political purposes,” he told Arab News.
Kazmi said it remained to be seen how the new force would operate after its jurisdiction was extended nationwide, given that law and order became a provincial subject after the 18th amendment of the Constitution of Pakistan.
“It would not be easy for the government to deploy this force in provinces governed by the opposition, such as KP,” he noted.
WFP, GCF launch $9.8 million project to protect flood-prone communities in Pakistan’s north
- The initiative aims to benefit 1.6 million people through early warning systems, capacity-building of local authorities
- Pakistan witnessed unprecedented floods in 2022, over 100 people have already been killed by monsoon rains this year
ISLAMABAD: The United Nations (UN) World Food Program and the Green Climate Fund (GCF) have launched a $9.8 million project in Pakistan aimed at protecting flood-prone communities in its northwestern Khyber Pakhtunkhwa province, Pakistani state media reported on Tuesday.
Titled the “Integrated Climate Risk Management for Strengthened Resilience to Climate” project, the initiative aims to help flood-prone communities cope with extreme weather by installing early warning systems such as weather stations and river-level monitors.
Pakistan is one of the world’s most vulnerable countries to the effects of climate change and its 240 million residents are facing extreme weather events with increasing frequency.
In 2022, unprecedented monsoon floods submerged a third of Pakistan and killed 1,700 people, with some areas still recovering from the damage. This year, more than 110 people have been killed and over 200 injured in rain-related incidents across the country.
“The initiative funded by the GCF with $9.8 million will directly benefit 1.6 million people in Buner and Shangla districts of KP province, two areas highly vulnerable to climate shocks,” the Associated Press of Pakistan (APP) news agency reported on Tuesday.
The project will help improve coordination among government departments and enhance capacity of local authorities and emergency teams through targeted trainings and essential equipment, according to the report.
This will ensure timely and effective responses to climate-related emergencies and faster communication of alerts to communities at risk. People will be trained to interpret warnings issued by the weather systems to evacuate safely and take measures to protect their farms and homes before disasters strike.
“Recurring climate shocks are a driver of hunger and malnutrition, threatening lives, livelihoods and entire food systems,” WFP Pakistan Representative and Country Director Coco Ushiyama was quoted as saying.
“This project represents a multi-layered investment, not only in early warning systems and anticipatory action, but also in local adaptation planning and institutional capacity.”
The initiative supports the UN-backed GCF’s Strategic Plan 2024–2027 by addressing urgent adaptation needs in underserved areas, bridging critical capacity gaps in flood preparedness and strengthening community resilience.
