PSX Rises on IMF Deal, Unexpected Current Account Surplus

The Pakistan Stock Exchange (PSX) continued its upward trend on Tuesday, boosted by positive investor sentiment following a staff-level agreement (SLA) with the International Monetary Fund (IMF), strong corporate earnings expectations, and news of possible Saudi investments.

The KSE-100 Index, the benchmark of the PSX, hit an intraday high of 168,197.47 points, rising by 2,171 points (1.31%) from the previous close of 166,242.90. Even the day’s low was positive, at 166,923.59 points.

According to Ahfaz Mustafa, CEO of Ismail Iqbal Securities, the rally was driven by multiple factors:

“The successful IMF agreement, the upcoming results season, and the expected sell-off of First Women Bank are boosting investor confidence.”

He also noted that talks of Saudi investment and a current account surplus added to the bullish momentum.

Pakistan recorded a current account surplus of $110 million in September, compared to a $325 million deficit in August and a $52 million deficit in September 2024, according to data from the State Bank of Pakistan.

This unexpected surplus came as a surprise to many analysts, who had forecast a deficit between $400 million and $500 million.

Saad Hanif, Head of Research at Ismail Iqbal Securities, said:

“The surplus was a big surprise. It likely came from timing differences in trade and payment data. While temporary, it provides a confidence boost to the market.”

Despite the monthly surplus, Pakistan’s current account deficit for the first quarter of FY2026 rose by 18% to $594 million.