PSX hits record high as KSE-100 surges on positive economic signals

The Pakistan Stock Exchange (PSX) continued its bullish run on Wednesday as the KSE-100 Index jumped 1,347.99 points (1.12%) to close at a new record of 121,798.86.

During the session, the index reached an intraday high of 121,882.47, up 1,431.60 points (1.19%). The lowest point of the day was 120,896.13, still showing a strong gain of 445.26 points (0.37%).

Market analysts say the rally was driven by improving investor sentiment, technical momentum, and encouraging news on the economic front.

“Making new highs has triggered an upside on a technical basis,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

He added that circular debt payments, tax cut rumours, and strong cement and fertilizer sales have sparked a broad-based rally.

Investor confidence further rose after Prime Minister Shehbaz Sharif announced that talks with the IMF were successful. Speaking in Peshawar, he said the focus would now shift from economic stabilization to sustainable growth, backed by institutional reforms.

In a major development, Pakistan’s economic team reportedly convinced the IMF to drop its demand to raise Federal Excise Duty (FED) on fertilizer from 5% to 10%, providing relief to the agriculture sector.

Additionally, the Asian Development Bank (ADB) approved an $800 million package to support Pakistan’s economy. This includes:

• A $300 million policy-based loan

• A $500 million guarantee to attract commercial financing

These funds will support tax reforms, public spending improvements, and digital governance under the “Improved Resource Mobilisation and Utilisation Reform Program.”

The rally follows Tuesday’s session, where the KSE-100 Index soared 1,573.07 points (1.32%) to close at 120,450.87, setting the stage for Wednesday’s record-breaking performance.