Karachi, September 29, 2025: The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Monday, with the benchmark KSE-100 Index breaching the 163,000 level for the first time on the back of improved macroeconomic indicators, easing concerns over inflation, and renewed foreign engagement.
The index closed at an all-time high of 163,847.68 points, gaining 1,590.68 points (0.98%) from the previous close of 162,257.00. During intraday trading, it touched a historic high of 163,903.62 points, before briefly dipping to 162,058.64 points.
Market sentiment remained upbeat after last week’s surge, supported by Prime Minister Shehbaz Sharif’s meeting with US President Donald Trump, a landmark Rs1.2 trillion debt settlement deal with commercial banks, and optimism over Saudi investment prospects.
“The effects of the floods seem milder than expected, keeping inflation within range. Coupled with the reported shift from fixed income to equities, this is driving a market re-rating,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He added that improved foreign relations were reducing rollover risks, further boosting confidence.
Additional support came from the government’s Rs1.225 trillion circular debt financing plan, Pakistan’s push for external funding through Panda bonds and commercial loans, and a modest $22 million rise in forex reserves, which reached $14.4 billion as of September 19. The rupee also inched up by 0.03% to Rs281.37 against the US dollar.
Analysts expect momentum to continue in banking, energy, and power sectors, though they flagged IMF conditionalities and external financing as key risk factors.
Other developments included IMF concerns over missed tax targets, a 10% power tariff cut following debt repayments, Japan’s intent to invest in the Reko Diq project, and Pakistan’s request for tariff concessions from China on 700 items.
On Friday, the index had surged 2,976.92 points (1.87%) to settle at 162,257.01, extending gains that have lifted the KSE-100 to successive historic highs.
