The Muttahida Quami Movement (MQM), a key ally of the ruling Pakistan People's Party (PPP), has accused the Sindh province's home minister - a member of the PPP -- of associating with criminals, raising concerns over political stability.

The PPP has denied the accusations and on Tuesday, Zardari assured an MQM delegation that, "its reservation with particular reference to the recent events that had created tension between the coalition partners, will be addressed", according to the media reports.

"Bullish activity was witnessed across the board led by the fertilizer sector after government coalition partner MQM was assured by the President about their concerns," said Ahsan Mehanti, director at Arif Habib Investments Ltd.

KSE benchmark 100-share index ended 1.58 percent, or 188.14 points, higher at 12,128.15.

Turnover rose to 100.41 million shares, compared with only 54.21 million shares traded on Tuesday.

The rupee weakened on Wednesday amid high dollar demand from importers because of rising international oil prices.

The rupee ended at 85.30/40 to the dollar, down from Tuesday's close 85.08/12.

In the money market, overnight rates were almost flat at 13.00 percent, compared with the previous day's close of between at 12.5-13.0 percent.