The Pakistan Stock Exchange (PSX) surged to a historic level on Friday as the KSE-100 Index hit an intraday all-time high of 161,688.01 points, gaining 2,401.97 points or 1.51% from the previous close of 159,280.09. The rally was fueled by strong liquidity inflows, improving geopolitical ties, and signs of macroeconomic stability.
Muhammad Saad Ali, Head of Research at Lucky Investment, linked the rise to sustained optimism about Pakistan’s economy. “All economic indicators are moving in the right directions, the IMF programme is on track and side by side we are also in a good place with regards to our foreign policy and our relations with countries which are our bilateral lenders, such as China, Saudi Arabia and the US,” he noted. Ali added that the 160,000 milestone, initially expected by year-end, was achieved earlier than anticipated.
Independent analyst AAH Soomro also highlighted that “the economy is moving in the right direction, which is supporting investor confidence,” but cautioned against unidirectional movements, stressing the importance of healthy market corrections.
The rally comes as Pakistan and the International Monetary Fund (IMF) began technical talks on revenue shortfalls. The IMF raised concerns over the Federal Board of Revenue’s Rs1.2 trillion shortfall, despite new tax measures. The FBR collected Rs11.74 trillion in FY2024-25, against an initial target of Rs12.97 trillion, with officials citing Rs250 billion stuck in litigation.
Meanwhile, Pakistan secured $1.377 billion in external loans during July and August, including $200 million from Saudi Arabia’s oil facility, and multilateral inflows led by the World Bank.
Separately, Prime Minister Shehbaz Sharif held his first meeting with US President Donald Trump in Washington, where the two leaders discussed regional security, counter-terrorism, and bilateral cooperation. Sharif credited Trump’s “bold, courageous, and decisive actions” for helping facilitate a ceasefire between Pakistan and India.
PSX Smashes 161,000 Mark on Investor Optimism, Economic Stability
