KARACHI – The Pakistan Stock Exchange (PSX) began the week on a bullish note, with the benchmark KSE-100 Index soaring past the 136,000 mark for the first time ever, as improving macroeconomic indicators, strong remittances, and optimism around corporate earnings sparked investor enthusiasm.
The index surged to an intraday high of 136,140.87, gaining 1,841 points (1.37%), reflecting broad-based buying across sectors.
💹 What’s Driving the Rally?
According to market analysts, the rally is being fueled by:
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Record-breaking remittances – $38.3 billion in FY25, with June alone contributing $3.4 billion
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Strong foreign exchange reserves – SBP’s reserves jumped by $1.8 billion to $14.5 billion, the highest in over three years
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Low inflation, export growth, and SOEs privatisation
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High investor interest amid anticipation of robust corporate earnings
Ahsan Mehanti, CEO of Arif Habib Commodities, noted that “thin inflation, surging exports, and global oil prices acted as catalysts.”
Prime Minister Shehbaz Sharif welcomed the milestone, calling it a vote of confidence in the government’s economic direction and policies.
🧾 IMF Endorsement and Fiscal Confidence
International Monetary Fund (IMF) Resident Representative Mahir Binici said Pakistan’s performance under the Extended Fund Facility (EFF) has been “strong,” crediting early policy measures for rebuilding investor trust.
Independent analyst AAH Soomro added that higher taxes on fixed-income returns have redirected investments towards the stock market.
🪙 Panda Bonds & External Support
Investor confidence also grew following news that Pakistan’s preparations for issuing Panda Bonds (yuan-denominated bonds) in China are nearing completion. The move is expected to diversify funding sources and strengthen Pakistan’s external account position.
With total reserves now over $20 billion, and upbeat economic signals, market watchers expect the positive momentum to continue—especially as earnings season gets underway.
