Pakistan stocks soar over 7,000 points amid easing geopolitical, domestic tensions

A stockbroker monitors share prices on computers during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on October 2, 2025. (EPA/File)
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Updated 14 October 2025
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Pakistan stocks soar over 7,000 points amid easing geopolitical, domestic tensions

  • KSE-100 index jumps 7,032.60 points, or 4.44 percent, to close at 165,476.02 on Tuesday
  • Stocks rebound as investors cheer improved Pak-US ties, progress on Gaza ceasefire

ISLAMABAD: Pakistan’s benchmark share index jumped over 7,000 points on Tuesday, with analysts attributing the spike to easing geopolitical and domestic tensions, which lifted investor sentiment.

The KSE-100 index surged by 7,032.60 points, or 4.44 percent, to close at 165,476.02, compared to the previous close of 158,443.42.

Sana Tawfik, the Head of Research at Arif Habib Limited, said the index surged past the 165,000 level, marking one of the largest point gains in the history of the index.

“The rally was fueled by easing geopolitical and domestic political tensions, coupled with renewed investor interest as the results season commenced,” she told Arab News over the phone.

The Pakistan Stock Exchange (PSX) fell sharply on Monday as cross-border hostilities between Pakistan and Afghanistan prompted broad-based selling across key sectors.

The two neighbors exchanged heavy cross-border fire over the weekend, leaving 23 Pakistani soldiers and over 200 Afghan Taliban fighters dead, according to the Pakistan military.

The country also witnessed clashes between the government and a religio-political party striving to march on Islamabad in the last few days before their movement was halted on the outskirts of eastern Lahore.

Meanwhile, Ahsan Mehanti, Chief Executive Officer of Arif Habib Commodities, said stocks showed a strong recovery as investors welcomed improving Pakistan-US relations, progress on the Gaza ceasefire deal and easing tensions with Afghanistan.

“Renewed hopes for a positive Pakistan-International Monetary Fund and World Bank review meeting for the release of an IMF tranche next month played a catalytic role in record bullish activity at the PSX,” he said.

Pakistan’s Finance Minister Muhammad Aurangzeb arrived in Washington on Sunday to attend the IMF and World Bank annual meetings and hold talks on investment, taxation and economic reforms.


Pakistan says it seized 32 square kilometers inside Afghanistan as border clashes escalate

Updated 28 February 2026
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Pakistan says it seized 32 square kilometers inside Afghanistan as border clashes escalate

  • Security official describes ‘limited tactical action’ in Gudwana after Afghan assaults
  • Islamabad accuses Kabul of sheltering militants as UN, China and Russia urge restraint

ISLAMABAD: Pakistan has seized a 32-square-kilometer area inside Afghanistan following overnight fighting, a security official said on Saturday, as cross-border clashes between the two countries escalated sharply.

A Pakistani security official, speaking on condition of anonymity, said troops carried out a “limited tactical action” in the Gudwana area opposite the Zhob sector along the frontier, capturing Afghan territory after responding to attacks on Pakistani positions.

“On the night of Feb. 26/27, posts opposite the Zhob sector launched anticipated physical attacks on multiple Pakistani positions,” the official said, referring to fighters linked to Afghanistan’s Taliban authorities, whom Islamabad identifies as Tehreek-e-Taliban Afghanistan (TTA).

“In response to aggressive unprovoked fire and physical attacks, Pakistan security forces launched a limited tactical action on the night of Feb. 27/28 in the general area of Gudwana with a view to capture TTA Tahir Post,” he continued, adding that 32 square kilometers of Afghan territory were seized.

The official said special combat teams crossed the border after preparatory bombardment, supported by intelligence, surveillance and reconnaissance assets providing “real-time battlefield awareness.”

He said 24 Afghan Taliban fighters were killed and 37 wounded, with no Pakistani casualties reported.

The claims could not be independently verified, and there was no immediate confirmation from Taliban authorities in Kabul of any territorial loss in the Gudwana area.

The latest clashes erupted after Pakistani airstrikes targeted what Islamabad described as militant hideouts inside Afghanistan over the weekend, triggering retaliatory fire along the frontier and sharply escalating long-running tensions. Islamabad accuses Kabul of sheltering Pakistani Taliban militants responsible for attacks inside Pakistan, an allegation that Afghanistan denies.

Pakistan’s Information Minister Attaullah Tarar said on Saturday evening that 352 Afghan Taliban fighters had been killed and more than 535 wounded since the latest phase of hostilities began.

Tarar said Pakistani strikes had destroyed 130 check posts, 171 tanks and armored vehicles and targeted 41 locations across Afghanistan by air. Those figures could not be independently verified.

The United Nations, as well as China and Russia, have called for restraint.

The United States said Pakistan has the right to defend itself against cross-border militancy.