Pakistan stocks close at record high as investor confidence surges following Saudi defense pact

Stockbrokers monitor the latest share prices at the Pakistan Stock Exchange (PSE) in Karachi on July 3, 2023. (AFP/File)
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Updated 18 September 2025
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Pakistan stocks close at record high as investor confidence surges following Saudi defense pact

  • Pakistan stocks closed at 157,953.4 points, increasing by 1,775.65 points from previous day’s close, as per stock market data
  • Financial analysts say investors expect economic support from Saudi Arabia as its ties with Pakistan improve following pact

KARACHI: The Pakistan Stock Exchange (PSX) closed at an all-time high of 157,953.47 points on Thursday, up by 1,775.65 points with analysts attributing the latest surge to growing investor confidence following Pakistan’s landmark defense pact with Saudi Arabia this week. 

According to the PSX website, Pakistani stocks rose during the intra-day trading to 158,082.55 points before declining to 157,953.47 points at close of business. The stocks registered an increase of 1.14 percent from the previous day’s close, which was recorded at 156,177.81 points. The market saw robust activity, with 1.959 billion shares valued at Rs56.93 billion ($1 billion) compared to the 1.499 billion shares worth Rs48.85 billion ($857 million) traded the previous day.

The development takes place a day after Pakistan and Saudi Arabia signed a “Strategic Mutual Defense Agreement,” pledging that aggression against one country would be treated as an attack on both, with the move expected to enhance joint deterrence and strengthen decades of military and security cooperation between the allies. 

“The market touched the all-time high after Pak-Saudi pact, which is likely to ease (Islamabad’s) financial burden as Pak-Saudi relations improve and investors expect economic support following the Middle East pact,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News. 

Leading brokerage house Topline Securities agreed, crediting the points surge to the landmark defense pact. 

“The bulls stampeded across the trading floor today as the local bourse surged on the back of a landmark development— the signing of the Strategic Mutual Defense Agreement (SMDA) between Saudi Arabia and Pakistan,” Topline Securities said. 

’HISTORIC, STRATEGIC’ TIES

The pact was signed between the two countries during Prime Minister Shehbaz Sharif’s state visit to Riyadh on Wednesday, where he met Saudi Crown Prince and Prime Minister Mohammed bin Salman at Al-Yamamah Palace. The two leaders, joined by senior ministers and military officials, reviewed what Sharif’s office called a “historic and strategic” relationship between the two nations and discussed regional developments.

The accord comes at a time of extreme volatility in the Middle East, where prolonged conflicts have heightened fears of wider instability, reinforcing the urgency Gulf states place on stronger security and defense partnerships.

A joint statement released later described the pact as a reflection of the two governments’ shared commitment to strengthening defense cooperation and “achieving security and peace in the region and the world.”

Saudi Arabia and Pakistan have for decades maintained close political, military and economic ties. The Kingdom hosts more than 2.5 million Pakistani expatriates — the largest overseas community sending remittances back home — and has repeatedly provided Islamabad with financial support during economic crises. Defense cooperation has included training, arms purchases and joint military exercises.
The new agreement formalizes that cooperation into a mutual defense commitment, a step that analysts widely say places the relationship on par with other strategic partnerships in the region. 


Pakistani migrant’s death in UAE shatters economic future of families back home

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Pakistani migrant’s death in UAE shatters economic future of families back home

  • Pakistani driver killed by falling debris during missile interception in Abu Dhabi amid escalating Middle East conflict
  • Death leaves more than a dozen dependents in Pakistan without income after eight years of overseas work

ISLAMABAD: For days, Nazar Ali told his daughter-in-law a gentle lie: authorities in the United Arab Emirates (UAE) had confiscated all mobile phones and her husband, Mureeb Zaman, would call home as soon as he got it back.

In reality, Zaman, a 40-year-old Pakistani driver who had spent eight years working in the UAE to lift his family out of poverty, had already been killed by missile fragments during an aerial interception over Abu Dhabi amid an escalating conflict in the Middle East.

The conflict began on Feb. 28 after the United States and Israel launched strikes on Iran following weeks of escalating tensions between Tehran and its regional adversaries. The attacks triggered retaliatory drone and missile strikes by Iran targeting commercial and US-linked interests across the Gulf region, prompting air defense systems in several countries to intercept projectiles in the skies above major cities.

As interceptors met incoming missiles over the Emirati capital that night, falling debris struck Zaman, ending years of work he hoped would secure a better future for his five children in one of Pakistan’s most volatile regions.

“I found out the same day because nowadays it is the age of the Internet,” Ali, Zaman’s father, told Arab News during a condolence gathering at his residence last week.

“I myself was in the market at that time when I received the news [of his death], but I did not tell the family.”

Zaman had been supporting three households in his hometown in Pakistan’s northwestern Bannu district, including the family of his late younger brother. The region, located in the province of Khyber Pakhtunkhwa near the Afghan border, has witnessed a surge in militancy and counterinsurgency operations in recent years.

The 40-year-old was one of millions of Pakistani migrant workers in Gulf countries whose remittances are a vital source of foreign exchange for Pakistan’s fragile economy.

He is also among the first reported Pakistani casualties of the recent escalation. Two Pakistani nationals have been killed so far in aerial interceptions in the UAE, while another Pakistani died last week in a similar incident in Iranian waters off Pakistan’s southwestern Balochistan province, according to authorities.

Zaman’s life abroad was measured in long-distance phone calls and carefully saved earnings, while his wife, four daughters and one son lived in a single room at their family home in Bannu.

“He used to say that ‘When I come on Eid, God willing, I will build a room for you’,” Ali, his grieving father, said.

For Zaman, working in the UAE represented an escape from the insecurity and economic hardship that have long plagued his hometown, where militant attacks targeting security forces and civilians have periodically disrupted daily life.

Family members said he had hoped to return home for the upcoming Eid Al-Fitr holiday, encouraged by military operations against militant groups in Khyber Pakhtunkhwa that had raised hopes of greater stability in the region.

Adnan Gul, Zaman’s nephew, remembered his uncle as a warm and optimistic man who often spoke about building a better future for his family.

“His wish was to have a good home, a settled family, and a good, peaceful life,” Gul said.

Recalling Zaman as a cheerful man who loved food and rarely lost his temper, Gul added: “With younger people he behaved like one of them, and with elders he behaved like an elder.”

“He had many wishes, but unfortunately all those wishes remained unfulfilled.”

Now, Zaman’s death has left his extended family facing an uncertain future.

Relatives fear the loss of his income could disrupt the education of his children, who attend school while also memorizing the Holy Qur’an.

“He used to say these things and tell me ‘Not to tire yourself too much because you have already done a lot of hard work’,” Ali, his father, said, his voice trailing off.

“But such a day came that Allah Almighty once again left us [helpless], and we don’t know what will happen next.”

Buried in his hometown, Zaman is remembered through the photographs he shared with family members on WhatsApp and the Eid gifts he had already purchased before his death.

“When a person leaves this world, only memories remain,” Gul said.