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KARACHI: The Pakistan Stock Exchange (PSX) closed at an all-time high of 157,953.47 points on Thursday, up by 1,775.65 points with analysts attributing the latest surge to growing investor confidence following Pakistan’s landmark defense pact with �������� this week. 

According to the PSX website, Pakistani stocks rose during the intra-day trading to 158,082.55 points before declining to 157,953.47 points at close of business. The stocks registered an increase of 1.14 percent from the previous day’s close, which was recorded at 156,177.81 points. The market saw robust activity, with 1.959 billion shares valued at Rs56.93 billion ($1 billion) compared to the 1.499 billion shares worth Rs48.85 billion ($857 million) traded the previous day.

The development takes place a day after Pakistan and �������� signed a “Strategic Mutual Defense Agreement,” pledging that aggression against one country would be treated as an attack on both, with the move expected to enhance joint deterrence and strengthen decades of military and security cooperation between the allies. 

“The market touched the all-time high after Pak-Saudi pact, which is likely to ease (Islamabad’s) financial burden as Pak-Saudi relations improve and investors expect economic support following the Middle East pact,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News. 

Leading brokerage house Topline Securities agreed, crediting the points surge to the landmark defense pact. 

“The bulls stampeded across the trading floor today as the local bourse surged on the back of a landmark development— the signing of the Strategic Mutual Defense Agreement (SMDA) between �������� and Pakistan,” Topline Securities said. 

’HISTORIC, STRATEGIC’ TIES

The pact was signed between the two countries during Prime Minister Shehbaz Sharif’s state visit to Riyadh on Wednesday, where he met Saudi Crown Prince and Prime Minister Mohammed bin Salman at Al-Yamamah Palace. The two leaders, joined by senior ministers and military officials, reviewed what Sharif’s office called a “historic and strategic” relationship between the two nations and discussed regional developments.

The accord comes at a time of extreme volatility in the Middle East, where prolonged conflicts have heightened fears of wider instability, reinforcing the urgency Gulf states place on stronger security and defense partnerships.

A joint statement released later described the pact as a reflection of the two governments’ shared commitment to strengthening defense cooperation and “achieving security and peace in the region and the world.”

�������� and Pakistan have for decades maintained close political, military and economic ties. The Kingdom hosts more than 2.5 million Pakistani expatriates — the largest overseas community sending remittances back home — and has repeatedly provided Islamabad with financial support during economic crises. Defense cooperation has included training, arms purchases and joint military exercises.
The new agreement formalizes that cooperation into a mutual defense commitment, a step that analysts widely say places the relationship on par with other strategic partnerships in the region. 

ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) warned on Thursday that widespread rains in several districts of the eastern Punjab province, already reeling from catastrophic floods, may cause river levels to rise to dangerous levels again as the nationwide death toll since Jun. 26 surged to 1,006. 

The warning from the NDMA comes as the Punjab Disaster Management Authority (PDMA) said that water levels in Punjab’s rivers are returning to “normal,” as floods flow downstream into the southern Sindh province. 

Heavy rains and excess water released from Indian dams have caused three major rivers — the Chenab, Ravi and Sutlej — in the eastern Punjab province to swell late last month, inundating more than 4,700 villages in the country’s agricultural heartland, destroying crops and homes and forcing millions to flee. Over 110 people were killed while at least 300,000 people across Pakistan remain in tents, according to official figures. Over 2,000 relief camps are reported operational nationwide, with rescue operations continuing in Punjab and Sindh in coordination with the Pakistan Army and Navy.

“The National Disaster Management Authority (NDMA) on Thursday warned of widespread rain with thunderstorms across several districts in Punjab over the next two days, increasing the risk of river swelling in vulnerable areas due to rising water levels in upper catchments,” state broadcaster Radio Pakistan reported. 

The NDMA’s National Emergency Operations Center (NEOC) predicted heavy rain and thunderstorms in Rawalpindi, Islamabad, Gujrat, Gujranwala, and Lahore divisions in the next two days. The authority said intermittent showers were also likely in northwestern Peshawar, Kohat, Bannu districts and eastern Sargodha, Faisalabad, and southwestern Zhob divisions. 

“Heavy rainfall is expected to trigger a significant surge in hill torrent flows, posing additional risks to low-lying and flood-prone regions,” Radio Pakistan said. 

In response, NDMA said it has directed all relevant institutions to take proactive measures to manage potential emergency situations.

“Authorities are closely monitoring developments and implementing timely interventions to mitigate hazards and ensure public safety,” the state-run media said.

The NDMA urged citizens to avoid crossing swollen streams, bridges, and flooded roads. It called upon residents in high-risk areas to stay informed of the latest weather situation through official announcements on television and mobile alerts.

FLOODS IN SINDH

Concerns for riverine floods increased in the downstream southern Sindh province since earlier this month as water levels in Punjab receded and headed toward the southern province.
“The River Indus at Guddu is in medium flood, Sukkur is in high flood and Kotri is in low flood level,” the Pakistan Meteorological Department said in a statement on Thursday, referring to three major barrages in Sindh.
“River Sutlej at Ganda Singh Wala is in medium flood whereas at Sulemanki and Islam it is at low flood level,” it continued. “The River Indus at Kotri is likely to remain in medium flood level up to the end of this month.
Pakistan, which contributes only one percent of global greenhouse gas emissions, is among the countries most severely affected by climate change.

Catastrophic floods in 2022 killed 1,700 people, affected 33 million and caused over $30 billion in damage.