The Pakistan Stock Exchange (PSX) closed with strong gains as the benchmark KSE-100 index surged by 1,729.48 points, rising 1.45% to finish at 120,667.59. During the session, the index touched a high of 120,793.41 and a low of 119,085.73, indicating a stable and confident trading range. Over 60 million shares were traded, and the total value of trades reached Rs5.12 billion—reflecting solid investor interest and increased market activity.
This bullish momentum came after Prime Minister Shehbaz Sharif announced a major cut in electricity tariffs. The government reduced power prices by Rs7.41 per unit, amounting to a 15% drop. The move is aimed at easing the financial pressure on families and encouraging more electricity usage across the country. Around 40.3 million consumers, mostly residential, are expected to benefit from this decision.
The new average electricity rate for domestic users is now Rs34.37 per unit, while industries will pay Rs40.51 per unit. Commercial users have been granted up to 12% relief, and industrial consumers will see a 13% reduction. The biggest benefit goes to protected residential consumers, with rate cuts of up to 32%, depending on their usage. These reductions were made possible through seasonal tariff adjustments, budget-neutral subsidies, and lower energy taxes. The plan was approved after negotiations with the International Monetary Fund (IMF), despite initial resistance.
While investor confidence in the local market has strengthened, international trade developments have raised fresh concerns. Former U.S. President Donald Trump announced a 29% tariff on Pakistani exports. The move is part of a larger “reciprocal tariff” strategy that targets 40 countries and aims to fix what Trump described as unfair trade practices harming U.S. industries. Trump claimed Pakistan imposes a 58% tariff on American goods, which prompted this new U.S. response.
The United States remains one of Pakistan’s biggest trading partners. In 2024, total trade between the two nations was valued at $7.3 billion. U.S. exports to Pakistan rose by 4.4% to $2.1 billion, while imports from Pakistan increased by 4.9% to $5.1 billion. These new U.S. tariffs could affect Pakistan’s key export sectors—especially textiles, leather goods, and surgical equipment—which rely heavily on access to the American market.
In summary, the sharp rise in the KSE-100 index reflects renewed optimism among local investors following the government’s energy reforms. However, the announcement of new U.S. tariffs poses a significant challenge for Pakistan’s export-driven industries. As Pakistan works to strengthen its economy, it must also navigate changing global trade policies and maintain strong diplomatic ties with key partners like the United States.
