The Pakistan bag (PSX) witnessed a strong bullish trend as the KSE-100 reference index increased by 1,729.48 points, or 1.45%, current index to 120,667.59.
The index reached a maximum of 120,793.41 points during the negotiation session within the day and maintained a relatively strict range, with the decline of the day recorded at 119,085.73 points.
The negotiation volume was more than 60 million shares, reflecting strong participation in investors.
The commercial value of the day amounted to 5.12 billion, underlining a solid market activity that has raised the confidence of investors.
The development occurred after Prime Minister Shehbaz Sharif announced a 15% cut in electricity rates, reducing prices at RS7.41 per unit, aimed at relieving the financial burden of families and increasing the consumption of the national network.
The reduction, which benefits around 40.3 million consumers, mainly residential users, was achieved through seasonal rates adjustments, an increase in neutral subsidy in the budget and tax reductions.
The new average electricity rate for national consumers will be RS34.37 per unit, while industrial rates have been reduced to RS40.51 per unit.
The Government negotiated successfully with the International Monetary Fund (IMF) to approve this price reduction, despite the initial resistance.
The maximum relief of 12% has been granted to commercial consumers, while industrial users benefit from a 13% reduction.
The new rates also introduce significant cuts for protected residential consumers, with reductions of up to 32% according to the use.
On the other hand, the president of the United States, Donald Trump, announced the imposition of ‘reciprocal’ tariffs discounted in several countries, including a 29% rate on Pakistani goods.
Trump justified the movement as a necessary step to correct commercial imbalances and address what he saw as an unfair treatment of US products in foreign markets.
He argued that the high rates imposed by other countries, including Pakistan, had unfairly subsidized their economies at the expense of the United States.
Trump stressed that Pakistan had been charging a 58% tariff on US assets, which led the United States to impose a 29% rate in Pakistani exports.
The United States remains one of Pakistan’s largest commercial partners, with a bilateral trade valued at $ 7.3 billion in 2024.
In addition to Pakistan, the United States has imposed reciprocal tariffs on 40 other countries, with rates ranging from 10% to 50%, as part of a broader strategy to address global commercial imbalances and guarantee fairer commercial conditions for US industries.
