Karachi – The stock market surged to another record high on Monday as the KSE-100 Index crossed the 163,000 mark for the first time, closing at an all-time high amid renewed investor confidence fueled by improving macroeconomic indicators and sustained foreign engagement.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 163,847.68 points, marking a gain of 1,590.68 points, or , from the previous close of 162,257.00. The index touched a new intraday high of 163,903.62 points during the session.
“The effects of the floods seem milder than expected; therefore, the inflation numbers will remain well within range. This, coupled with the reported conversion of fixed income investment to equity, is causing the market to rerate,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He added that the improving macro front and reduced rollover risk due to better international relations were also boosting market sentiments.
Key Drivers of the Rally
Investor confidence remained buoyant following last week’s historic rally. This positive sentiment was reinforced by significant national developments, including Prime Minister Shehbaz Sharif’s meeting with US President Donald Trump, a landmark trillion debt settlement agreement with commercial banks, and renewed optimism surrounding Saudi economic engagement.
- Debt Resolution & Financing: The trillion circular-debt financing deal, combined with Pakistan’s push for external funding through Panda bonds and commercial loans, further strengthened market sentiment.
- External Reserves and Currency: The State Bank of Pakistan reported an increase of million in foreign exchange reserves, which stood at billion as of September 19, 2025. The Pakistani rupee firmed slightly by against the US dollar, closing at .
Analysts expect the current momentum to sustain in the near term, particularly in the banking, energy, and power sectors, though IMF conditionalities and external financing requirements remain critical risk factors that could temper the outlook.
Other Notable Developments
The market rally occurred amidst several key regulatory and international developments, including IMF concerns over missed tax targets, a power tariff cut following debt repayment, Japan’s plan to invest in the Reko Diq project, and Pakistan’s request for tariff concessions from China on 700 items.
