The stock market extended its run of gains on Tuesday, as investor sentiment remained upbeat, driven by record-breaking remittances and increasing optimism regarding the country’s external account prospects.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed by 385.47 points, or 0.33%, to close at 116,775.50. During the day, the index reached a high of 117,362.22, marking an increase of 972.19 points, or 0.84%, from the previous closing figure of 116,390.03. The session’s low was recorded at 116,645.68, still showing a gain of 255.65 points or 0.22%.
Explaining the positive market sentiment, Sana Tawfik, Head of Research at Arif Habib Limited, stated: “The positive market today is primarily attributed to yesterday’s update on the economic front by the State Bank governor, in which remittance figures of $4.1 billion were shared.”
She further added, “Then there was news indicating that Fitch will most likely upgrade our rating. The governor also mentioned yesterday that this month’s current account is in surplus and that the full fiscal year is also highly likely to conclude in surplus.”
This market rally followed optimistic remarks from the State Bank of Pakistan (SBP) Governor Jameel Ahmad, who on Monday expressed his confidence that the country’s foreign exchange reserves could reach $14 billion by June 2025.
Speaking with Geo News, he noted that $2 billion in external payments are due over the next two and a half months, while expected inflows of $4–5 billion during the same period could result in a net addition of $2–3 billion to the reserves.
Governor Ahmad also projected that total remittances could reach an all-time high of $38 billion by the end of the current fiscal year (FY25), a significant increase from the $30.25 billion recorded in FY24. The central bank attributed this growth to increased utilization of formal channels, regulatory efforts aimed at stabilizing the exchange market, and growing trust in banking systems.
Data released by the SBP on Monday revealed that overseas Pakistanis sent home a record $4.1 billion in remittances in March alone, the highest ever for a single month. This represented a 37% increase year-on-year and a 29.8% rise compared to February. Cumulative remittances for the first nine months of FY25 have risen by 33.2% to $28 billion.
Investor confidence was further bolstered by reports suggesting that the international credit rating agency Fitch may upgrade Pakistan’s rating in the coming days. According to high-ranking official sources, the agency is considering upgrading the country’s rating from CCC+ to B, reflecting improved macroeconomic stability and a reduced risk of default.
On Monday, the KSE-100 Index had already demonstrated a strong recovery, climbing by 1,536.70 points, or 1.34%, to close at 116,390.03. This reversed the losses from the previous week and reinforced the prevailing market optimism.
