The equity market experienced a surge on Tuesday, driven by elevated assurances of economic stability, expectations of policy easing, and strong anticipated corporate earnings.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at an all-time high of 139,419.61, marking an increase of 1,202.03 points, or 0.87%, from its previous close of 138,217.58.
During the trading session, the index initially climbed to an intraday high of 139,901.77, gaining 1,684.19 points (1.22%), before retracting slightly to a low of 138,197.81, down 19.77 points (0.01%).
“Stocks are trading at a new all-time high after business leaders’ meeting with Field Marshal Munir assured the military’s support for economic progress,” stated Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
He added that “likely SBP policy easing in the announcement next week and expectations over strong financial results and annual payouts played a catalyst role in bullish activity at PSX.”
A delegation of prominent business figures, led by former caretaker federal minister Gohar Ejaz, met with Field Marshal Asim Munir to discuss the nation’s economic outlook and ongoing reforms. The delegation included APTMA Chairman Kamran Arshad, SM Tanvir, and the presidents of FPCCI and LCCI.
Ejaz reported that the group briefed the military leadership on the improving macroeconomic landscape and reaffirmed the business community’s support for the government’s reform agenda. He emphasized the necessity of rate cuts and responsive budget adjustments to foster business-led growth.
Analysts anticipate the bullish momentum to continue, propelled by increasing macroeconomic confidence, expected monetary easing, and progress on the government’s privatization agenda.
Finance Minister Muhammad Aurangzeb conducted high-level discussions with US officials on Saturday, seeking tariff relief and stronger economic ties.
Describing the ongoing talks as a “game changer,” Aurangzeb highlighted that the United States is Pakistan’s largest trading partner and advocated for a long-term strategic partnership focused on investment and technology. He characterized the discussions as positive and forward-looking.
Macroeconomic data released last week further fueled optimism. Pakistan recorded a current account surplus of $328 million in June 2025, contributing to a full-year surplus of $2.1 billion for FY25—the first in 14 years. This surplus, equivalent to 0.5% of GDP, was driven by record remittances, import compression, and sustained inflows under the IMF’s $7 billion loan program.
Meanwhile, the auto sector’s performance remained resilient, with auto financing rising 20% year-on-year to Rs277 billion in June, indicating strengthening consumer sentiment and a recovery in demand for durable goods.
On Monday, the KSE-100 Index had declined by 379.78 points, or 0.27%, to close at 138,217.58 points, down from 138,597.36 points recorded in the previous session. During that day, the index touched a high of 139,201.16 and a low of 138,149.57.
