Pakistan Stock Exchange Surges on easing Geopolitical Tensions and Strong Manufacturing Data
Karachi, Pakistan – January 23, 2026 – the Pakistan stock Exchange (PSX) experienced a important rally on Friday, January 17th, 2026, driven by a combination of easing geopolitical concerns in the Middle East and robust growth in the country’s large-scale manufacturing sector. The benchmark KSE-100 index closed at 185,099.83 points,marking an remarkable increase of 3,642.49 points,or 2.01 percent [[1]].
The positive market sentiment followed signals from the United States administration indicating a de-escalation of tensions with Iran, alleviating fears of a wider regional conflict that could disrupt global oil supplies [[1]]. This perceived calm spurred broad-based buying activity, especially within the oil and gas, fertilizer, and banking sectors.
Contributing significantly to the index’s gains where key players including Oil and Gas Development Company, Pakistan Petroleum, Hub Power, Engro Holdings, Fauji Fertiliser, United Bank, and Meezan Bank, collectively adding 1,725 points to the overall increase [[1]].
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, attributed the market’s strong performance to improved global indicators and encouraging domestic economic data. He noted that the easing of geopolitical uncertainty acted as a catalyst for widespread investment,reinforcing positive momentum at the local bourse [[1]].
Further bolstering investor confidence was the government’s decision to maintain existing petrol and diesel prices for the January 16-31 period, despite fluctuations in global petroleum markets. While higher petroleum levies offset lower ex-refinery prices, the stability provided a degree of predictability for consumers and businesses alike.
Economic data released concurrently revealed a substantial 10.4 percent year-on
