The Pakistan Stock Exchange (PSX) lit up on Monday as the benchmark KSE-100 Index rallied by 2,202.77 points, closing at 136,502.53 — a 1.64% rise from Friday’s finish of 134,299.76. The index touched an intraday high of 136,841.49, up 1.94%, showing robust investor confidence and positive momentum.
Analysts credited the rally to multiple factors: macroeconomic improvements, speculation around earnings reports, and optimism surrounding the government’s economic direction. According to Ahsan Mehanti, MD and CEO at Arif Habib Commodities, “Stocks traded at new all-time highs amid earnings season excitement. Low inflation, rising exports, and SOE privatisation combined with global oil price gains fueled the bullish mood.”
AAH Soomro, an independent economic analyst, said investor appetite was further strengthened by “IMF endorsement, improved forex reserves, and new taxes on fixed income, encouraging a shift towards equities.”
Government Policies Inspire Investor Trust
Prime Minister Shehbaz Sharif welcomed the surge, calling the KSE-100’s climb past 135,000 a reflection of growing investor trust and market confidence. He highlighted that Pakistan has now moved from economic stabilisation to a phase of growth.
“The improving economic indicators and market response show our policies are on track,” he said, reaffirming the government’s commitment to maintaining a business-friendly environment. “National development and public welfare remain our priorities.”
The IMF also weighed in positively. Mahir Binici, Resident Representative for Pakistan, said the country’s performance under the Extended Fund Facility has been “strong so far,” citing early policy actions that stabilized macroeconomic conditions and restored investor trust — despite lingering external risks.
Remittances and Reserves Hit Record Highs
Pakistan’s external sector got a major boost from unprecedented workers’ remittances and swelling foreign exchange reserves. The country received a record $38.3 billion in remittances during FY25, up 27% year-on-year. June alone contributed $3.4 billion, an 8% jump from last year.
This surge not only reinforced investor confidence but also improved the balance of payments outlook. Supporting this sentiment, the State Bank of Pakistan reported that its reserves rose by $1.8 billion to reach $14.5 billion — the highest in 39 months. Combined with commercial bank holdings, Pakistan’s total foreign reserves have surpassed the $20 billion mark for the first time in three years.
In parallel, plans for Pakistan’s debut Panda bond issuance gained momentum. High-level meetings in China are moving the process forward. The bond, expected later this year, aims to broaden funding avenues and ease pressure on the external account.
As the week continues, investors will closely watch corporate earnings announcements, updates on the Panda bond, and further signs of macroeconomic stability. With strong inflows, IMF backing, and policy continuity, analysts expect the bullish trend at PSX to hold — at least in the near term.
Follow us on Instagram, YouTube, Facebook,, X and TikTok for latest updates
