Pakistan’s stocks hit all-time high on power tariff relief, easing inflation

Pakistan’s stock market surged to a new all-time high Thursday, driven by government announcement of electricity rates reduction and favorable inflation data, analysts said.

The rally gained momentum following Prime Minister Shehbaz Sharif’s announcement of power tariff relief for both industrial and domestic consumers, an analyst at Ismail Iqbal Securities said.

Investor sentiment was further boosted by March’s inflation rate, which came in at a modest 0.7%.

However, the textile sector faced headwinds due to reciprocal tariffs imposed by the United States, affecting one of Pakistan’s major export industries.

An analyst at Topline Securities said the market’s robust performance was primarily fueled by the government’s decision to lower electricity prices, providing relief to businesses and households.

The benchmark index’s gains were led by strong performances from United Bank Limited, Meezan Bank, Mari Energies, Lucky Cement, and Oil and Gas Development Company, which collectively contributed 839 points.

Despite the pressures faced by the textile sector, analysts remain optimistic that ongoing government measures will continue to support investor confidence.

KSE-100 index gained 0.96% or 1,131.36 points to close at 118,938.11 points.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 40 paisas to close at 280.56. In the open market USD was trading at PKR 282.

Indian Stocks

Indian stock indexes closed lower Thursday, pressured by the U.S. administration’s new reciprocal tariffs on partner countries, including India.

Former President Donald Trump announced a 26% reciprocal tariff on India, half the rate India imposes on U.S. imports. He also introduced a 25% tariff on automobile imports, a move expected to impact auto stocks such as Tata Motors and Samvardhana Motherson.

Market analysts said sentiment was affected by the tariff announcement, which takes effect April 5.

BSE-100 index shed 0.31% or 74.97 points to close at 24,353.66 points.

DFM General Index shed 1.66% or 85.01 points to close at 5,027.23 points.

Crude Oil

Oil prices turned negative after former U.S. President Donald Trump announced reciprocal tariffs on trading partners, raising concerns that a global trade war could weaken crude demand.

Trump’s tariff policies could fuel inflation, slow economic growth and escalate trade disputes—factors that have kept oil price gains in check. Analysts say the market’s focus now shifts to the global growth outlook, which may be revised downward due to higher-than-expected tariffs.

Brent crude prices decreased by 5.58% to $70.77 per barrel.

Gold Prices

Gold prices dipped Thursday after hitting a record high earlier in the session, as investors took profits following President Donald Trump’s sweeping tariff announcement, which fueled a flight to safe-haven assets.

Economic growth prospects have dimmed amid sluggish trade, rising costs, and geopolitical uncertainty—a combination that has bolstered demand for gold. The rally was sparked by Trump’s Wednesday declaration of a new 10% baseline tariff on most U.S. imports, along with higher levies on several trading partners.

International gold prices declined 1.15% to close at $ 3,090.09 per ounce. In the local market, gold prices increased by PKR 500 to 325,500 per tola.