Faraz Saeed

LAHORE: Rising global oil prices&nbsp;stemming from the <a href="https://www.pakistantv.com/article/usisrael-war-on-iran-day-11" target="_blank">war in the Middle East&nbsp;</a>have led Pakistan to implement emergency measures to protect its economy, with fuel costs and market volatility prompting authorities to act immediately. The crisis centers on the <a href="https://www.pakistantv.com/article/hormuz-crisis-as-iran-war-disrupts-global-oil-supply-and-fuel-prices" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">Strait of Hormuz</a>, through which roughly 20% of the world&rsquo;s oil supply passes. Oil futures surged 31%, with West Texas Intermediate briefly hitting $119.48 per barrel and Brent at $119.50. This marks the first time prices have crossed $100 since the Russian-Ukrainian War started in 2022. The spike follows escalating tensions in the Middle East, which forced Gulf producers to cut output. This prompted some commercial vessels to avoid the strait. With only a limited number of tankers initially transiting the strait, there were fears of major supply disruptions. Prices eased after a G7 meeting suggested coordinated measures, including the release of strategic reserves, and after US President Donald Trump said the conflict could conclude sooner than expected, CBS News reported. By Monday&rsquo;s close, WTI settled at $94.77 and Brent at $98.96 per barrel. Markets rebound Pakistan&rsquo;s financial markets reflected investor anxiety. The Pakistan Stock Exchange suffered its largest single-day drop on March 2, falling more than 16,000 points, according to Topline Securities. On March 9, the index fell by over 11,000 points after attacks on Iranian oil depots in Tehran. However, after Monday&#39;s panic tone, the local bourse witnessed a powerful comeback on Tuesday as confidence quickly returned to the market. The bulls charged aggressively from the opening bell, triggering a temporary market halt amid intense buying activity. Momentum remained strong throughout the session, pushing the index to an impressive intraday surge of 11,873 points, before settling at 156,177 (up 9,696 points or 6.62%). The market followed its Asian peers, which rebounded after oil prices plunged overnight. Some analysts see further signs of stabilization. Arif Habib Limited said global sentiment may be approaching a &ldquo;peak fear&rdquo; phase. &ldquo;Globally, it appears we are reaching &lsquo;peak fear&rsquo; moments and any positive news regarding the conflict will result in markets aggressively repricing higher,&rdquo; the brokerage said in its note. The firm stated that with the index down about 25% from its January peak, valuations may begin to attract long-term investors if geopolitical tensions ease. Domestic fuel prices Rising global oil prices have translated into higher domestic costs. Pakistan increased fuel prices by roughly 20% last week. Economists warned of ripple effects. Waqas Ghani of JS Global, speaking to Pakistan TV Digital, said a $10 per barrel increase could add $300 million immediately to the import bill and raise annual costs to up to $2 billion. Inflation could rise by about 0.6 percentage points. Economist Dr Ikram ul Haq, speaking to Pakistan TV Digital, noted the effect on transportation and essential goods, especially diesel-dependent logistics. He also cited Pakistan&rsquo;s reliance on petroleum levies and the broader fiscal implications of prolonged high oil prices, which could put pressure on foreign exchange reserves. Securing alternative supplies Pakistan has sought alternative energy sources. Saudi Arabia assured crude shipments via the Port of Yanbu on the Red Sea, bypassing the Strait of Hormuz. Petroleum Minister Pervaiz Malik said three shipments are expected soon, with one vessel already assured for crude loading at Yanbu. Energy analysts say the arrangement will help reduce the risk of supply disruptions. &ldquo;This arrangement will improve supply security,&rdquo; Ghani said. &ldquo;This move has allowed Pakistan to avoid disruption risk.&rdquo; Protecting trade, reducing consumption The Pakistan Navy launched Operation Muhafiz-ul-Bahr to safeguard maritime trade routes, the military said. The government also implemented austerity measures to reduce fuel consumption. Prime Minister Shehbaz Sharif <a href="https://www.pakistantv.com/article/pakistan-announces-austerity-measures-as-oil-supply-disrupted-by-middle-east-clashes" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">announced</a> a four-day workweek and work-from-home arrangements for half of the public and private-sector staff. Fuel allocations for government vehicles will be cut 50% for two months. Ministers will forgo salaries, parliamentarians will take a 25% cut, and senior officers will lose two days of pay. Schools will close for two weeks, universities will shift to online instruction, departmental spending will drop by 20%, official foreign travel will be suspended, and vehicle purchases will be banned. PM Sharif said the steps aim to shield citizens from the worst impact of rising oil prices. Meanwhile, the State Bank of Pakistan kept its policy rate at 10.5%, citing uncertainty from the Middle East conflict. The Monetary Policy Committee said higher fuel, freight, and insurance costs, along with trade and travel disruptions, could affect the economy depending on the conflict&rsquo;s intensity and duration. Officials stated that immediate measures are meant to cushion the economy. The long-term impact will depend on easing tensions in the Gulf and on global oil market stability.

Economy

Pakistan's stock market saw Monday's volatility with an 11,000-point drop amid Middle East war oil fears, but Tuesday brought a strong rebound, closing up 9,696 points (6.62%) at 156,177, as confidence returned and oil prices plunged.

Pakistan acts to shield economy amid Middle East oil crisis

LAHORE: The Pakistan Stock Exchange (PSX) hit a fresh all-time high, crossing the 183,000 level during the opening minutes of Monday, before the benchmark KSE-100 index settled above the 182,000 level for the first time in history.&nbsp;The market opened on a positive trajectory and maintained an upward momentum through much of the session, reaching an intraday high of 183,964.37 before easing slightly towards the end. At close, the benchmark KSE-100 Index settled at 182,408.23, an increase of 3,373.31 points, or 1.88%.&nbsp;Buying interest was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, and power generation.&nbsp;Index-heavy stocks, including HUBCO, NBP, BOP, MARI, OGDC, POL, PPL, PSO, SNGPL, SSGC, HBL, MCB, MEBL, and UBL, traded in the green.&nbsp;The KSE-100 Index surged by 6,634 points, up 3.8% week-on-week, to a new all-time high of 179,035 points during the week ended on Friday.&nbsp;The index has also delivered a robust performance in calendar year 2025, posting a return of 51%, marking the third straight year of double-digit gains, following returns of 55% in calendar year 2023 and an exceptional 84% in 2024.&nbsp;Speaking to Pakistan TV, Waqas Ghani, Head of Research at JS Global, noted that Pakistan&rsquo;s &ldquo;equity market has delivered an exceptional return of 331% over the last three years, demonstrating the country&rsquo;s resilience and potential.&rdquo;&nbsp;Citing his 2025 outlook report at JS Global, Waqas added that there is room for the KSE-100 to continue progressing, though at a moderate pace.&nbsp;In his report, he mentioned that valuations at the KSE-100 remain supportive, &ldquo;trading at a P/E of 8x,&rdquo; and anticipated that there could be some re-rating at these levels. Steady earnings growth across sectors and decent dividend yields are expected to drive returns. He projects the index to reach the 225,000 level by December 2026.&nbsp;Similarly, Arif Habib Limited has set a December 2026 target for the KSE-100 Index at 208,000 points, implying an upside of 21.6% from the closing level on 23 December 2025. &ldquo;Our index target is based on target price mapping and justified P/E,&rdquo; according to Arif Habib Limited, Pakistan Investment Strategy 2026: The Equity Edge Continues.&nbsp;The report predicts that the Pakistan Stock Exchange is expected to remain the best-performing asset class in 2026, driven by improving macroeconomic stability, easing inflationary pressures, and sustained domestic liquidity.&nbsp;It added: &ldquo;In 2026, equities remain the top choice, with the KSE-100 projected to grow by 21.60%, significantly outperforming gold (5.15%), silver (7.89%), and T-bills (10.05%),&rdquo; the report said.&nbsp;Meanwhile, a report by AKD Research projected that the KSE-100 index would reach the 263,800 level, driven by further monetary easing and an improving external account position.&nbsp;The index is expected to deliver a robust return of 53% in 2026, reaching a historic market capitalization of $100 billion.&nbsp;

JS Global projects the index to reach the 225,000 level by December 2026.

PSX hit fresh all-time high, index crosses 183,000 level

LAHORE: The Pakistan Stock Exchange (PSX) closed the week on a record-breaking note Friday, with the benchmark KSE-100 Index settling at an all-time high of 162,257 points, buoyed by improved sentiment following Prime Minister Shehbaz Sharif&rsquo;s meeting with US President Donald Trump.&nbsp;The market rallied strongly throughout the session, gaining nearly 3,000 points compared to Thursday&rsquo;s close of 159,280. Buying interest was broad-based, led by stocks in cement, commercial banks, oil and gas exploration companies, OMCs, power, and refineries.&nbsp;The positive momentum continued after PM Sharif&rsquo;s early Friday meeting with Trump at the White House, where he was accompanied by Pakistan&#39;s army chief, Field Marshal Syed Asim Munir. The Prime Minister thanked Trump for a tariff arrangement concluded earlier this year and invited US firms to invest in Pakistan&rsquo;s agriculture, IT, minerals, and energy sectors.&nbsp;&ldquo;Improved external and fiscal balances under the IMF programme have provided much-needed confidence in macro stability,&rdquo; Waqas Ghani, Head of Research at JS Global, told Pakistan TV Digital. &ldquo;Corporate earnings prospects remain upbeat, particularly in cyclicals, and liquidity continues to drive momentum.&rdquo;&nbsp;Irfan Saeed, Regional Head at Munir Khanani Securities, said the record close reflects &ldquo;a convergence of strong fundamentals, upbeat corporate earnings, and fresh optimism after the Trump&ndash;Sharif meeting.&rdquo; He noted that expectations of investment from the Middle East, particularly in oil, gas, and minerals, have further strengthened sentiment.&nbsp;He added that the oil and gas sector has been pivotal in driving the rally, with the recent settlement of circular debt injecting liquidity and boosting investor confidence.&nbsp;The week&rsquo;s performance cements PSX&rsquo;s position among the best-performing regional markets, with analysts expecting the bullish trend to continue in the near term.

The PSX closed the week at a record 162,257 points, soaring after the Donald Trump, Shehbaz Sharif meeting in Washington boosted sentiment. Analysts credit IMF-backed stability, strong liquidity, and Middle East investment hopes for driving the rally.

Articles tagged with "Pakistan Stock Exchange"

Pakistan acts to shield economy amid Middle East oil crisis

PSX hit fresh all-time high, index crosses 183,000 level

Pakistani stock market ends week at record high after Trump-Sharif meeting