The Pakistan Stock Exchange’s benchmark KSE-100 surged near 9% to 116,868 in early trading Monday, following a weekend ceasefire agreement between India and Pakistan.
The truce in the Himalayan region, announced Saturday by U.S. President Trump after four days of heavy cross-border fire and diplomatic pressure from Washington, boosted investor confidence.
Sentiment was further lifted by reports of the IMF’s approval of a $1 billion immediate disbursement and a new $1.4 billion climate resilience plan.
Gains were broad-based, led by retail trade, utilities, and logistics.
However, risks linger as India has yet to lift its suspension of the Indus Water Treaty, which could threaten Pakistan’s agricultural output.
Tensions resurfaced after a senior Indian diplomat claimed Pakistan violated the ceasefire hours after it was declared — a charge Islamabad denies.