Trump says settled Pakistan-India standoff through trade deals

Golfer Ernie Els speaks in the Oval Office during a meeting between U.S. President Donald Trump and South African President Cyril Ramaphosa, at the White House in Washington, DC, US on May 21, 2025. (Reuters)
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Updated 22 May 2025
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Trump says settled Pakistan-India standoff through trade deals

  • Trump has repeatedly said he offered to help both nations with trade if they agreed to de-escalate
  • India has previously rejected that trade concessions were discussed in ceasefire discussions

ISLAMABAD: President Donald Trump said on Wednesday he had used US trade ties to persuade nuclear-armed neighbors India and Pakistan to back off from their worst military confrontation in decades earlier this month, a claim New Delhi has previously rejected. 

Following a May 10 understanding reached between India and Pakistan in what was a US-mediated ceasefire to stop military action on land, in the air and at sea, Trump has repeatedly said he had offered to help both the nations with trade if they agreed to de-escalate.

Pakistan has not commented specifically on the trade-related claim though it has repeatedly thanked Trump for his role in the de-escalation efforts. The Indian government has, however, said trade concessions did not come up in discussions to secure the ceasefire. 

“If you take a look at what we just did with Pakistan and India, we settled that whole thing, and I think I settled it through trade,” Trump said in televised comments during a meeting at the White House with South African President Cyril Ramaphosa. 

“We’re doing a big deal with India. We’re doing a big deal with Pakistan,” the US president added, without giving details of what agreements he was referring to. 

Before the ceasefire, the militaries of India and Pakistan were engaged in one of their most serious confrontations in decades since May 7, when India struck targets inside Pakistan it said were affiliated with militants responsible for the killing of 26 tourists last month in Indian-administered Kashmir.

After India’s strikes in Pakistan, both sides exchanged heavy fire along their de facto border, followed by missile and drone strikes into each other’s territories, mainly targeting military installations and air bases.

The escalating hostilities threatened regional peace, leading to calls by world leaders to cool down tempers.

Trump has said he not only helped mediate the ceasefire but also offered mediation over the simmering dispute in Kashmir, a Himalayan region that both India and Pakistan claim in entirety but govern in part. The two nations have fought two wars over Kashmir, which has long been described as the regional nuclear flashpoint.

New Delhi has rejected Trump’s offer for mediation, saying Kashmir was a bilateral issue, while Pakistan has welcomed the offer. 

With inputs from AP


Pakistan stocks hit new all-time high as IMF clears $1.32 billion disbursement

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Pakistan stocks hit new all-time high as IMF clears $1.32 billion disbursement

  • Benchmark KSE-100 closes at record 169,456 after gaining 1,153 points amid strong buying
  • IMF said its executive board approved Pakistan’s latest loan review on Monday, unlocking about $1.2 billion

ISLAMABAD: Pakistan’s equity market surged to an all-time high on Tuesday, with the benchmark KSE-100 index closing at 169,456, up 1,153 points (0.69 percent), as investor sentiment strengthened following the IMF’s approval of fresh disbursements under its existing loan program.

Traders attributed the record close to renewed risk appetite, driven by strong local institutional buying and confidence in the macro-economic outlook after the IMF said its executive board approved Pakistan’s latest loan review on Monday, unlocking about $1.2 billion and keeping the country’s IMF program on track. The surge extended a bullish trend that has carried the index upward through the final quarter of 2025.

In a session summary, Topline Securities said market momentum remained firmly on the upside.

“The bulls commanded today’s trading session with remarkable strength, lifting the benchmark index to breathtaking new heights,” it said. “After soaring to an intraday high of 1,297 points, the market closed at a record-breaking 169,456, gaining 1,153 points or 0.69 percent.”

Trading activity remained strong, with total volumes reaching 1.02 billion shares, while turnover rose to Rs 51.1 billion. K-Electric (KEL) led the volume chart with approximately 86.7 million shares traded, while heavyweights including Fauji Fertilizer (FFC), Lucky Cement (LUCK), Habib Bank Ltd. (HBL), Pakistan State Oil (PSO), and Maple Leaf Cement (MLCF) collectively contributed around 640 points to the index’s gain.

Analysts said improving liquidity, optimism over external financing and active participation from local mutual funds supported the rally. 

Market participants will now watch for macro data releases, fiscal performance indicators and further external funding commitments to assess whether the rally can sustain in the coming weeks.