On Wednesday, the Pakistan Stock Exchange (PSX) saw its equity market trading near record highs. Investors were buoyed by strong corporate earnings momentum and ongoing discussions between the government and Moody’s for a potential ratings upgrade, before the market experienced some selling pressure.
The PSX’s benchmark KSE-100 Index settled at 136,379.96 points, marking an increase of 440.09 points (0.32%) from its previous close of 135,939.87.
During the trading session, the index reached an intraday high of 137,232.10, gaining 1,292.23 points (0.95%). It also touched an intraday low of 135,542.88, reflecting a decline of 396.99 points (0.29%).
“Stocks are trading at new all-time highs in this earnings season rally at PSX as investors consider strong financial results and anticipate a likely Moody’s upgrade driven by robust economic recovery,” stated Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
He added that the Finance Minister’s confirmation regarding efforts to resolve issues with industrials over FBR (Federal Board of Revenue) powers, along with sharing compelling evidence of economic recovery with Moody’s, played a catalytic role in the bullish activity at PSX.
Pakistan’s Economic Trajectory Briefed to Moody’s
The Ministry of Finance reported that Federal Minister for Finance and Revenue Muhammad Aurangzeb held a virtual meeting with Moody’s Rating Agency. The purpose of the meeting was to brief them on Pakistan’s macroeconomic trajectory, its reform strategy, and the country’s financial stability framework.
Aurangzeb highlighted several key indicators as signs of sustained recovery: a sharp decline in inflation, monetary easing, exchange rate stability, a current account surplus, and a significant surge in foreign exchange reserves—now exceeding $14 billion. He also pointed to growing remittance inflows and increasing exports as reflections of improving investor confidence and overall economic resilience.
The finance minister reiterated Pakistan’s steadfast commitment to continuing structural reforms, including State-Owned Enterprise (SOE) privatization, maintaining fiscal discipline, and enhancing transparency. He addressed Moody’s queries and emphasized the government’s firm resolve to stay the course on macroeconomic reforms.
Banking Sector Shows Robust Growth
In a further indicator of confidence, Pakistan’s banking sector has demonstrated double-digit growth across deposits, advances, and investments.
According to the State Bank of Pakistan, bank deposits saw a 14.1% year-on-year increase, reaching Rs35.5 trillion by June 2025. This growth was largely propelled by remittance inflows and a shift towards formal savings, facilitated by easing inflation and reduced cash hoarding. On a month-on-month basis, deposits rose by 8.5%.
Bank advances reached Rs13.52 trillion, an 8.7% year-on-year rise, while investments climbed 21.2% to Rs36.57 trillion. “Deposit growth reflects a combination of improved remittance inflows and a shift towards formal savings amid easing inflation and reduced cash hoarding,” commented Saad Hanif, Head of Research at Ismail Iqbal Securities.
It’s worth noting that on Tuesday, the KSE-100 Index had declined by 562.67 points (0.41%), closing at 135,939.87 points from the previous session’s 136,502.54. The day’s high on Tuesday was 137,747.61, with a low of 135,826.40.
