Pakistan Stock Exchange Hits All-Time High Amid Economic Optimism

Karachi, Friday, September 26, 2025 – The Pakistan Stock Exchange (PSX) continued its buying rally today as the KSE-100 Index surged to a record high of 161,688.01 points in intraday trading. The index gained 2,401.97 points (1.51%) from the previous close of 159,280.09, marking a new milestone in the country’s financial history.

Surge in KSE-100 Index

Market analysts credited the sharp rise to strong liquidity inflows, a better geopolitical outlook, and signs of macroeconomic stability. Experts said investor confidence is at its strongest in many years.

Muhammad Saad Ali, Head of Research at Lucky Investment, said:
“All economic indicators are moving in the right direction. The IMF programme is on track, and Pakistan’s foreign relations with key partners like China, Saudi Arabia, and the US are also stable. This has boosted investor confidence.”

He added that the 160,000 mark was expected by year-end but came much earlier due to positive momentum.

Expert Opinions

Independent economic analyst AAH Soomro said the rally reflects strong optimism but also warned about possible corrections.
“The economy is moving in the right direction, but unidirectional growth always requires caution,” he noted.

IMF Talks and Revenue Concerns

Meanwhile, Pakistan started technical-level talks with the IMF on Thursday. The Fund raised concerns over the FBR’s Rs1.2 trillion revenue shortfall despite new tax measures worth Rs1.3 trillion.

During July and August FY2025-26, Pakistan secured $1.377 billion in external loans. Out of this, $232 million came from bilateral inflows, including $200 million from Saudi Arabia under an oil facility. Multilateral lenders like the World Bank, ADB, AIIB, and IsDB disbursed $780 million, with the World Bank contributing the most.

Officials explained that the revenue gap was mainly due to pending court recoveries worth Rs250 billion.

The PSX record high reflects Pakistan’s growing financial confidence, supported by positive foreign relations, IMF cooperation, and a stable macroeconomic outlook. However, experts believe healthy corrections may be needed to sustain long-term growth.