Pakistan’s benchmark KSE-100 index staged a stunning 4.55 percent rally on Wednesday, surging 6,768 points to close above 155,000 — a sharp recovery after a market meltdown earlier in the week. Analysts at Topline Securities attributed the rebound to “signs of de-escalation and intensifying diplomatic efforts,” pointing to Deputy Prime Minister Ishaq Dar’s visit to China to engage stakeholders in peace efforts related to the U.S.-Israeli regional conflict.
Prime Minister Shehbaz Sharif, meanwhile, convened a review meeting to develop a comprehensive strategy shielding Pakistan from the economic impacts of the regional turmoil. The PM claimed the country was “successfully and effectively” managing the balance between demand and supply of essential commodities — a challenge many nations are currently facing. The twin signals of diplomatic engagement and domestic economic management appear to have calmed investor nerves, at least temporarily.
