Pakistan Stock Market Hits Record High as KSE-100 Crosses 120,000 Points

Thursday, May 22, 2025 – The Pakistan Stock Exchange (PSX) continued its upward trend today as the benchmark KSE-100 Index reached a new record high of 120,699.17 points during early trading.

The market gained 767.72 points, or 0.64%, compared to yesterday’s closing of 119,931.45 points. The index remained strong throughout the session, even when it dipped to a low of 120,210.56 points, which was still 279 points higher than the previous close.

Why Is the Market Rising?

Analysts say the rally is being supported by:

• Improved investor confidence

• Easing tensions between India and Pakistan

• Hopes of economic stability under the IMF’s supervision

“This rally started after relief from the Indo-Pak war scare,” said economic analyst AAH Soomro. “With an agreement on the IMF budget, we could see the market reach 150,000 points in the next 12 months.”

Pakistan’s Economy Crosses $400 Billion

Investor sentiment also improved after Pakistan’s economy hit a major milestone. The nominal GDP has crossed $400 billion for the first time.

According to the National Accounts Committee (NAC):

• FY25 GDP is estimated at Rs114.7 trillion ($411 billion)

• Last year’s GDP was Rs105.1 trillion ($372 billion)

• Annual GDP growth is 2.68%, lower than the government’s target of 3.6%

Growth in Q1 and Q2 was recorded at 1.37% and 1.53%, respectively.

IMF Budget Talks Continue

While the market rallies, budget talks with the IMF are still in progress. The IMF has proposed:

• Increasing Federal Excise Duty (FED) on fertilisers from 5% to 10%

• New 5% tax on pesticides

• Implementing Agriculture Income Tax (AIT) from July 1, 2025

Prime Minister Shehbaz Sharif is trying to convince the IMF to review these proposals, saying it could hurt the farming sector.

Experts believe AIT could help the government collect Rs40 to Rs50 billion from the provinces.