The capital market broke more records on Tuesday, surpassing 166,000 points for the first time, as upbeat economic signals and strong foreign ties sustained investor confidence.
Analysts see near-term momentum persisting — particularly in banks, energy and power — while noting that IMF conditionalities and external funding flows remain key risks.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 166,556.29, gaining 2708.61points, or 1.65%, and hit a low of 164,208.33, reflecting a rise of 360.65 points, or 0.22%.
Investor confidence remains buoyant after yesterday’s record-setting rally, underpinned by high-level engagement with the US, a landmark Rs1.225 trillion circular-debt financing arrangement with commercial banks, and renewed optimism around Saudi economic involvement.
Sentiment has also been supported by efforts to broaden external financing— including planned Panda bonds and additional commercial borrowings—alongside a recent uptick in foreign exchange reserves.
The State Bank reported a $22 million increase to $14.4 billion (as of September 19, 2025), with the rupee firming 0.03% to Rs281.37 per US dollar.
Separately, the Asian Development Bank said in its ADO September 2025 that Pakistan’s real GDP growth is expected at 3% in FY26, with inflation potentially rising to 6%.
The lender credited improved macro conditions and reform progress under the IMF EFF (since Oct 2024), but cautioned that policy consistency and climate resilience are vital, and that recent flood damage could weigh on growth even as external buffers and business confidence improve following the US-Pakistan trade agreement.
On Monday, the benchmark rose 1,590.68 points (+0.98%) to 163,847.69, after touching an intraday high of 163,903.62 and a low of 162,058.64.
