The Pakistan Stock Exchange (PSX) witnessed a historic rebound on Tuesday, posting its second-largest single-day gain ever as investors rushed to buy shares amid renewed optimism over improving Pakistan–US relations, easing border tensions, and expectations of progress in ongoing International Monetary Fund (IMF) and World Bank (WB) review talks.
The benchmark KSE-100 Index surged by 7,032.60 points, or 4.44%, closing at 165,476.02 compared to the previous session’s 158,443.42. During intraday trading, the index peaked at 165,866.77 points, marking a 4.69% rise, before easing slightly from the day’s high.
“Stocks showed robust recovery in the early session as investors weighed upbeat Pak–US relations and de-escalation in cross-border tension with Afghanistan,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
He added that renewed hopes for a positive outcome from Pakistan’s IMF and WB review talks, aimed at securing the next IMF tranche, played a catalytic role in driving the record bullish sentiment.
Investor confidence strengthened following Finance Minister Muhammad Aurangzeb’s high-level meetings in Washington with senior US and multilateral officials.
The finance minister highlighted Pakistan’s potential in oil, gas, minerals, agriculture, and IT sectors, while commending the recently agreed US tariff framework designed to enhance bilateral trade.
Aurangzeb met Robert Kaproth, US Assistant Treasury Secretary for International Finance, and Jonathan Greenstein, Counsellor to the Secretary, during the annual IMF–WB meetings.
He also discussed private-sector investment acceleration with IFC Regional Vice President Riccardo Puliti under the 10-year Country Partnership Framework (CPF) and the IFC-backed Reko Diq project.
Aurangzeb will represent Pakistan at IMF and WB plenary sessions, meet IMF Managing Director Kristalina Georgieva and World Bank President Ajay Banga, and address key global forums including the G24 and MENAP.
The rally followed Monday’s steep losses, when the index had dropped 4,654 points amid profit-taking, underscoring renewed investor optimism and resilience in Pakistan’s equity market.
