ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday gained nearly 3,000 points to close the week at an all-time high, with analysts attributing the bull run to warming United States-Pakistan relations and hopes of an International Monetary Fund (IMF) loan tranche release.
The benchmark KSE-100 index at the PSX gained 2,976 points, or 1.87 percent, to close the weekend trading session at 162,257 points, compared to the previous day’s close of 159,280 points.
Ties have improved between the US and Pakistan as Washington’s relationship with New Delhi has soured over India’s increased purchases of discounted Russian oil amid Ukraine war.
President Donald Trump this year raised tariffs on India for those oil purchases, while the US and Pakistan reached a landmark trade deal in July to allow Washington to help develop Pakistan’s largely untapped oil reserves and lower tariffs for Islamabad.
“Stocks closed new all-time high as investors weigh warming Pakistan-US relations and resolve [to end] over Rs1.225 trillion circular debt,” Ahsan Mehanti of Karachi-based Arif Habib Commodities told Arab News.
“Expected release of $1 billion IMF tranche next month, rupee gains and FDI (Foreign Direct Investment) inflows following Pakistan-Saudi defense pact played a catalyst role in bullish close at PSX.”
An IMF mission has arrived in Pakistan to hold the second review of its $7 billion External Fund Facility (EFF) and first review of the $1.4 billion Resilience and Sustainability Facility (RSF) loan programs for the country, an official of the global lender confirmed on Thursday.
The IMF approved the $7 billion bailout package for Pakistan in September last year. In May 2025, it approved a separate $1.4 billion loan to Pakistan under its climate resilience fund. Islamabad has so far received more than $2 billion under the EFF and is expecting a third tranche of $1 billion after the second review concludes successfully.
Separately, Pakistan signed a ‘Strategic Mutual Defense Agreement’ with Saudi Arabia this month, pledging that aggression against one country would be treated as an attack on both, a move that will enhance joint deterrence and strengthen decades of military and security cooperation. Many analysts believe the defense pact is also likely to open new avenues of economic cooperation between the two nations.
