Pakistan’s stock market reached a historic high on Friday, closing at 70,909 points amidst ongoing talks with the International Monetary Fund (IMF). The surge in the market was attributed to positive investor sentiment due to hopes of a successful IMF program for Pakistan.
However, the market also faced some nervousness in the morning trading session as news of Israel’s alleged attack on Iran emerged. Despite this development, the benchmark KSE-100 index surged by 647 points, showcasing resilience in the face of global geopolitical tensions.
Analysts cautioned about the potential economic impact of the Israel-Iran tensions on Pakistan, especially in terms of disruptions to the supply chain and rising global oil prices. The conflict could lead to increased import costs for Pakistan, particularly in the petroleum sector.
Furthermore, experts highlighted the potential consequences of a prolonged conflict between Iran and Israel on the Middle East region. Foreign investors may choose to shift their capital to safer markets, impacting Pakistan’s stock market and overall economic stability.
As Pakistan’s finance minister engages in talks with the IMF for a new loan program, the country’s economic future remains uncertain amidst escalating tensions in the Middle East. The outcome of these discussions and the resolution of geopolitical conflicts will play a crucial role in shaping Pakistan’s economic trajectory in the coming months.