Pakistan stock market breaches 130,000 barrier amid low inflation, surging oil prices

A stockbroker walks past share prices on a financial market board during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on April 9, 2025. (AFP/File)
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Updated 03 July 2025
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Pakistan stock market breaches 130,000 barrier amid low inflation, surging oil prices

  • Pakistan’s KSE-100 Index closes at 130,244.03 points, surging by 2,144.61 or gaining 1.67% from previous day
  • Latest milestone builds on strong showing in the previous fiscal year, when the KSE-100 Index rose by 60 percent

KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index breached the 130,000 points barrier to close at an all-time high on Wednesday, as financial analysts attributed the surge to low inflation and surging crude oil prices. 

The development takes place a day after Pakistan’s KSE-100 Index closed at an impressive 128,199.42 points on the first day of the new fiscal year, with Prime Minister Shehbaz Sharif calling the stocks’ performance a sign of growing investor confidence in the economy and government policies. The latest milestone builds on a strong showing in the previous fiscal year, when the KSE-100 Index rose by 60 percent, according to Karachi-based Topline Securities.

The Pakistani stock market closed at 130,344.03 points when trading ended on Wednesday. Continuing its bullish momentum, the index surged by 2,144.61 points, recording a gain of 1.67 percent from the previous day’s close. 

“Stocks closed at new all-time high in the earning season at PSX as investors weigh drop in CPI inflation to 3.2 percent YoY and upbeat data on POL sales surging by 7pc for June 25,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities Limited, said. 

Mehanti said higher global equities and Pakistani power regulatory authority’s recent move to slash the base power tariff for industries for the current fiscal year also played a role in the bullish close. He also paid credit to surging crude oil prices, saying they had played a “catalyst role” in the surge.

Karachi-based brokerage firm Topline Securities said the surge was fueled by “aggressive institutional buying” and a wave of fresh fiscal-year optimism among investors. 

“With the index in uncharted territory, all eyes are now on earnings season and macro signals to see if the bulls have more steam left or if a breather is around the corner,” it said in a statement.

Pakistan’s stocks surge as Islamabad seeks to consolidate its financial recovery after years of economic turbulence.

In recent years, the country has undertaken difficult structural reforms under International Monetary Fund loan programs aimed at curbing fiscal deficits and restoring investor trust.


Islamabad offers skilled manpower to help Iraq in reconstruction, development efforts

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Islamabad offers skilled manpower to help Iraq in reconstruction, development efforts

  • The development comes during Pakistan President Asif Ali Zardari’s four-day visit to Iraq to strengthen bilateral cooperation
  • Zardari says current levels of bilateral trade do not reflect true potential of Pakistan-Iraq ties, highlights opportunities

ISLAMABAD: Pakistan has offered to provide skilled manpower to support Iraq’s reconstruction and development efforts, the Pakistani government said on Sunday, signaling Islamabad’s willingness to deepen cooperation with Baghdad in sectors including infrastructure, technical services and human resource development.

The development comes during Pakistan President Asif Ali Zardari’s four-day visit to Iraq to strengthen cooperation in trade, investment, religious tourism, energy and other sectors.

Zardari held a one-on-one meeting with his Iraqi counterpart, Dr. Abdul Latif Jamal Rashid, at Baghdad Palace, which was followed by delegation-level talks to review the state of bilateral relations.

“President Zardari reiterated Pakistan’s willingness to support Iraq’s reconstruction and development efforts through the provision of skilled and semi-skilled manpower under the existing Memorandum of Understanding on manpower transmission,” Pakistan’s Press Information Department (PID) said in a statement.

“He also highlighted Pakistan’s capacity in medical services, financial expertise and digital governance, and expressed readiness to share technical experience, including in secure data management, to support institutional capacity-building in Iraq.”

Iraq has been working to rebuild its economy and infrastructure after decades of conflict, including the 2003 US-led invasion and years of instability caused by sectarian violence and the fight against Daesh group. Although security conditions have improved in recent years, large parts of the country still face damaged roads, power plants, hospitals and housing, requiring large-scale reconstruction and public service delivery.

During Sunday’s meeting, Zardari noted that the current levels of bilateral trade do not reflect the true potential of Pakistan-Iraq economic, cultural and security relations, highlighting opportunities in agriculture, defense production, information technology, construction, pharmaceuticals and other sectors. He underscored the importance of business-to-business engagement and the establishment of direct banking channels to facilitate trade and commercial activity, according to the PID.

Zardari also requested improved facilitation for Pakistani pilgrims visiting Iraq and expressed hope for early finalization and implementation of a proposed Memorandum of Understanding on Zaireen (pilgrims) Management, aimed at ensuring orderly travel. He expressed his firm resolve to work with the Iraqi government to stop illegal entry and overstay of those Pakistanis who violate Iraqi law.

“Both Presidents expressed their resolve to fight extremism, terrorism and narco trade and enhance bilateral cooperation,” the PID said. “The two leaders reaffirmed their commitment to further deepening bilateral cooperation across political, economic and social domains.”

Pakistan and Iraq established diplomatic relations in 1947 and have traditionally maintained cordial ties, though commercial links remain modest. The volume of trade between both countries stood at $268 million in 2023.

Pakistan’s major exports to Iraq include machinery and mechanical appliances, pharmaceutical products, fish, cereals, essential oils and resinoids. Islamabad’s imports from Iraq include mineral fuels, mineral, organic chemicals, edible fruit and nuts.