The Pakistan stock markets have been rising on multiple triggers including Pakistan’s growing proximity with the US and the recent deal with Saudi Arabia.
Some of the top gainers in today’s trade were Yousaf Weaving Mills, Punjab Oil Mills, Systems Ltd, TPL REIT Fund I Unt and United Bank which jumped by over 7%. Among the laggards were Rafhan Maize Products, Unity Foods, JDW Sugar Mills, Avanceon and Agritech Ltd which fell up to 5%.
Here’s what has been leading to KSE 100 index’s uptick:
1) Growing proximity with US
The relations between India’s Western neighbor and the US have taken a sharp positive turn since President Donald Trump took the reins of the world’s largest economy. The Trump administration has imposed a 19% tariff on Pakistan’s exports while terming the step as a “balanced and forward-looking” move that enhances the country’s competitiveness in the American market.
Pakistan welcomed the move as it was a climbdown from the previous 29% tariff announced by the US President.
Trump has also been quite vocal about deepening US’ trade relations with Pakistan especially in the fields of critical minerals and hydrocarbons.
Earlier, Times of India reported US Secretary of State Marco Rubio talking about exploring new economic collaboration opportunities in critical minerals and hydrocarbons.
In August, Trump also announced concluding a deal with Pakistan to develop their oil reserves. “We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!,” Trump then wrote on Truth Social.
2) Pakistan-Saudi Arabia defence pact
A “Strategic Mutual Defence Agreement” was signed by Saudi Crown Prince Mohammed bin Salman and Pakistan Prime Minister Shehbaz Sharif on 17 September. The move was being hailed as ‘Islamic NATO by the two countries.
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