FX.co ★ Pakistan Stocks Soar After Ceasefire and IMF Boost

The benchmark KSE-100 index of the Pakistan Stock Exchange experienced a significant rise of nearly 9%, reaching 116,868 during early trading on Monday. This surge can be attributed to the announcement of a ceasefire agreement over the weekend between India and Pakistan. The truce in the Himalayan region was declared on Saturday by U.S. President Donald Trump, following four days of intense cross-border conflicts and diplomatic efforts by Washington, fostering increased investor confidence.

Further bolstering market sentiment were reports confirming the International Monetary Fund's approval of an immediate $1 billion disbursement as well as the introduction of a new $1.4 billion climate resilience initiative. The gains within the market were widespread, particularly impacting sectors such as retail trade, utilities, and logistics.

Despite the positive developments, certain risks continue to persist. One significant concern is India's ongoing suspension of the Indus Water Treaty, which poses a threat to Pakistan's agricultural production. Additionally, tensions resurfaced when a senior Indian diplomat accused Pakistan of breaching the ceasefire mere hours after it was established—an allegation that Pakistan has categorically denied.