Karachi, April 10, 2025 – The Pakistan Stock Exchange (PSX) saw a notable surge on Thursday, with the KSE-100 index opening 3,000 points higher, marking a 3% increase in early trade. This positive shift came on the heels of an unexpected announcement from U.S. President Donald Trump, who declared a 90-day suspension of tariffs for all trade partners that had not yet imposed retaliatory measures against the United States. The move provided a sense of relief to global markets, including Pakistan’s, fueling a boost in investor confidence.
Within the first minute of live trading, the KSE-100 index jumped to 117,095 points, reflecting optimism in response to the U.S. decision. By 9:35 AM, the benchmark index had climbed further to 117,484 points, a rise of 2.91%, adding 3,331 points. The upward momentum continued in the following minutes, with the index stabilizing at 116,729 points by 9:38 AM, up by 2.26% or 2,575 points.
The tariff pause, which allows for a temporary truce in the ongoing trade tensions between the U.S. and its global partners, played a pivotal role in driving market optimism. Trump’s decision to delay imposing tariffs for 90 days on countries that had yet to retaliate against the U.S. was seen as a step towards de-escalating the trade conflict, easing fears of an imminent global economic slowdown. This led to a broad market rally, with investors quickly reacting to the news by buying into stocks across various sectors, including those most sensitive to trade and global supply chains.
The sharp rise in the PSX index highlights the market’s sensitivity to geopolitical developments, particularly those involving the world’s largest economy. It also underscores how external factors, such as U.S. trade policies, can significantly impact investor sentiment in Pakistan. Analysts suggest that while the tariff suspension is a temporary measure, it provides a welcome respite for markets that had been under pressure from ongoing trade tensions.
This surge in the PSX also aligns with global market trends, where major stock indices saw similar gains in response to Trump’s tariff pause. Investors globally welcomed the temporary reprieve, viewing it as a positive step toward averting further escalation in trade wars. The announcement seemed to alleviate some of the uncertainties surrounding global trade and the broader economic outlook, particularly in emerging markets like Pakistan.
At a time when the local economy is navigating through challenges such as inflation and fiscal reforms, the PSX’s early morning rally provided a much-needed boost. Market participants have long been looking for signals of stability, and the tariff delay offers a short-term cushion for Pakistan’s equity markets.
Despite the optimism triggered by the tariff news, analysts caution that the market remains vulnerable to potential developments in the trade dispute and other economic factors. While the 90-day tariff suspension offers some breathing room, the long-term impact will depend on whether further negotiations lead to a sustainable resolution of trade issues.
As the day progressed, market participants continued to monitor any further developments in the global trade landscape, with eyes now on how President Trump’s tariff suspension will influence international negotiations over the next few months. For now, however, the PSX’s early gains represent a clear sign of investor optimism, driven by positive sentiment surrounding the global economic outlook.