KARACHI (October 14, 2025) — After a turbulent week marked by steep losses, the Pakistan Stock Exchange (PSX) staged a remarkable recovery on Tuesday, gaining more than 4,000 points in early trading.
The surge came on the heels of encouraging news that Pakistan and the United States had finalized a much-anticipated tariff agreement, rekindling hopes of stronger trade relations between the two nations.
Finance Minister Muhammad Aurangzeb, currently on an official visit to Washington, confirmed that high-level discussions had successfully concluded, paving the way for enhanced bilateral cooperation. The announcement immediately lifted investor sentiment, with the KSE-100 Index climbing 4,242 points, or 2.68%, to reach 162,685.62 by 10:59 AM.
Market analysts described the rebound as a strong sign of investor confidence returning to the local bourse, which had shed more than 10,000 points in recent sessions amid uncertainty and global market pressures.
The new tariff deal is expected to boost trade flows and attract fresh investment from the US, particularly in sectors such as energy, minerals, agriculture, and information technology. During his visit, Aurangzeb also held meetings with senior US officials, representatives of international financial institutions, and private sector leaders.
In talks with US Assistant Secretary of the Treasury Robert Kaproth, the finance minister briefed his counterparts on Pakistan’s ongoing economic reforms, including legislative measures to regulate virtual assets and digital currencies. He also invited American firms to explore opportunities in Pakistan’s evolving business landscape, highlighting the government’s renewed focus on transparency, policy stability, and investor facilitation.
“This agreement reflects a new chapter in Pakistan-US economic cooperation,” a senior finance ministry official said, adding that the move is likely to “inject confidence back into the market and signal Pakistan’s readiness for deeper global engagement.”
The upbeat momentum at PSX, coupled with diplomatic progress in Washington, has offered a much-needed boost to the country’s financial outlook at least for now.
