Pakistani stocks breach 165,000 mark on optimism over IMF tranche, Saudi inflows

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 30 September 2025
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Pakistani stocks breach 165,000 mark on optimism over IMF tranche, Saudi inflows

  • The KSE-100 Index rose by one percent, or 1,645.90 points, to close at 165,493.58
  • IMF mission is in Islamabad to hold second review of i$7 billion Extended Fund Facility

ISLAMABAD: The Pakistan Stock Exchange (PSX) surged past the 165,000 mark for the first time ever, with analysts attributing the record high to expectations of the next International Monetary Fund (IMF) tranche and investment from Saudi Arabia.

The benchmark KSE-100 index rose by one percent or 1,645.90 points to close at 165,493.58 points as compared to the previous close of 163,847.68 points, according to the PSX website.

“Stocks reached a new all-time high at the quarter end close as investor weigh upbeat US-Pakistan relations and expected release of IMF EFF tranche,” Ahsan Mehanti, Chief Executive Officer of Arif Habib Commodities, told Arab News.

The IMF mission is currently in Islamabad to hold the second review of its $7 billion External Fund Facility (EFF) and the first review of the $1.4 billion Resilience and Sustainability Facility (RSF) loan programs for the country.

Mehanti said the resolution of the Rs1.2 trillion circular debt issue and stability in the rupee also played a part in the bullish trend.

He added that expectations of Saudi foreign direct investment after the Pakistan-Saudi defense pact also contributed to the bullish momentum.

Pakistan and Saudi Arabia last week strengthened joint deterrence and decades of military cooperation by signing a “Strategic Mutual Defense Agreement,” pledging that an attack on one would be considered an attack on both.

Sana Tawfiq, Head of Research at Arif Habib Limited, said media reports indicated that the IMF was now looking at a major flood impact on the economy.

“Plus, once the IMF review is successful, foreign reserves will be built following the IMF disbursement,” she said.

“Our expectation is that the inflation will be low and remain in single digits below six percent,” she continued. “It is expected at 5.5-6 percent despite food inflation month-on-month uptick due to flood factor.”

Pakistan, in its economic outlook released earlier today, warned that recent floods may drive food prices up in the coming weeks, though inflation is projected to remain under 4.5 percent this month.
 


Tens of thousands flee northwest Pakistan over fears of military operation

Updated 28 January 2026
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Tens of thousands flee northwest Pakistan over fears of military operation

  • More than 70,000 people, mostly women and children, have fled remote Tirah region bordering Afghanistan 
  • Government says no military operation underway or planned in Tirah, a town in Khyber Pakhtunkhwa province

BARA, Pakistan: More than 70,000 people, mostly women and children, have fled a remote region in northwestern Pakistan bordering Afghanistan over uncertainty of a military operation against the Pakistani Taliban, residents and officials said Tuesday.

Pakistan’s Defense Minister Khawaja Mohammad Asif has denied the claim by residents and provincial authorities. He said no military operation was underway or planned in Tirah, a town in Khyber Pakhtunkhwa province.

Speaking at a news conference in Islamabad, he said harsh weather, rather than military action, was driving the migration. His comments came weeks after residents started fleeing Tirah over fears of a possible army operation.

The exodus began a month after mosque loudspeakers urged residents to leave Tirah by Jan. 23 to avoid potential fighting. Last August, Pakistan launched a military operation against Pakistani Taliban in the Bajau r district in the northwest, displacing hundreds of thousands of people.

Shafi Jan, a spokesman for the provincial government in Khyber Pakhtunkhwa, posted on X that he held the federal government responsible for the ordeal of the displaced people, saying authorities in Islamabad were retracting their earlier position about the military operation.

Khyber Pakhtunkhwa Chief Minister Suhail Afridi, whose party is led by imprisoned former Prime Minister Imran Khan, has criticized the military and said his government will not allow troops to launch a full-scale operation in Tirah.

The military says it will continue intelligence-based operations against Pakistani Taliban, who are known as Tehrik-e-Taliban Pakistan, or TTP. Though a separate group, it has been emboldened since the Afghan

Taliban returned to power in 2021. Authorities say many TTP leaders and fighters have found sanctuary in Afghanistan and that hundreds of them have crossed into Tirah, often using residents as human shields when militant hideouts are raided.

Caught in the middle are the residents of Tirah, who continued arriving in Bara.

So far, local authorities have registered roughly 10,000 families — about 70,000 people — from Tirah, which has a population of around 150,000, said Talha Rafiq Alam, a local government administrator overseeing the relief effort. He said the registration deadline, originally set for Jan. 23, has been extended to Feb. 5.

He said the displaced would be able to return once the law-and-order situation improves.

Among those arriving in Bara and nearby towns was 35-year-old Zar Badshah, who said he left with his wife and four children after the authorities ordered an evacuation. He said mortar shells had exploded in villages in recent weeks, killing a woman and wounding four children in his village. “Community elders told us to leave. They instructed us to evacuate to safer places,” he said.

At a government school in Bara, hundreds of displaced lined up outside registration centers, waiting to be enrolled to receive government assistance. Many complained the process was slow.

Narendra Singh, 27, said members of the minority Sikh community also fled Tirah after food shortages worsened, exacerbated by heavy snowfall and uncertain security.

“There was a severe shortage of food items in Tirah, and that forced us to leave,” he said.

Tirah gained national attention in September, after an explosion at a compound allegedly used to store bomb-making materials killed at least 24 people. Authorities said most of the dead were militants linked to the TTP, though local leaders disputed that account, saying civilians, including women and children, were among the dead.