KARACHI – Pakistan Stock Exchange (PSX) is thriving despite US Tariffs shake global markets, sending investors in frenzy.
As world is reeling from Donald Trump’ wild move, Pakistan Stock Exchange (PSX) has seen unexpected surge in recent days, even as global stock markets have experienced significant declines after announcement of new tariffs by US President Donald Trump.
US imposed higher tariffs on imports from multiple countries, sending shockwaves through international markets, but Pakistan’s stock market has defied the trend. The global economic environment has been shaken by the US tariffs, which resulted in downturn in major markets, including the U.S., Europe, and Asia.
Nasdaq, and S&P 500 and major markets witnessed continuous declines, while Asian markets, including Hong Kong, Shanghai, and Tokyo, have also been affected. In just a few days, billions of USD have been wiped out from global stock markets.
However, in a surprising turn, Pakistan’s stock market has shown a positive trajectory. On Friday, Stock Exchange flagship benchmark KSE 100 surged past barrier of 120,000 points. The boost in Pakistan’s market came even after the U.S. imposed a 29% tariff on the country’s exports, which has been a major concern for analysts and investors alike.
Experts attribute the growth in the PSX to a number of domestic factors, rather than the global economic turmoil caused by the tariffs. Analysts believe that the recent reduction in electricity tariffs by the government has played a crucial role in the market’s positive performance.
The government’s decision to cut electricity prices for both domestic and industrial consumers has been seen as a move to support the local economy. This policy shift has positively impacted the stock market, with analysts noting that lower energy costs could boost industrial growth and ease inflationary pressures.
Those familiar with trend linked positive trend with cut in power tariffs which is pushing PSX. Besides tariffs, other economic indicators such as a decline in inflation and a reduction in the trade deficit have also contributed to investor optimism. The announcement of a plan to eliminate circular debt in the energy sector over the next five years has further supported market confidence.
Despite challenges posed by US tariffs, experts said PSX is unlikely to experience major brunt. The textile sector which is a key export industry for Pakistan, may be less affected than initially feared due to the fact that competing countries such as Bangladesh and Vietnam have faced even higher tariff hikes.
PSX soars to all-time high of 120000 after significant cut in electricity prices
