Karachi, September 30, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) on Tuesday soared to yet another historic high, closing at 165,494 points after gaining 1,646 points, or 1 percent, compared to the previous day’s close of 163,848 points.
During intraday trading, the index surged past 166,556 points, marking an all-time high, before profit-taking activity trimmed some of the gains toward the end of the session. Analysts attributed the rally to robust buying across multiple sectors, with automobile assemblers, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and power generation firms all contributing significantly. Index-heavy players such as ARL, HUBCO, OGDC, POL, PPL, SNGP, SSGC, MCB, MEBL, and UBL posted strong performances.
Market optimism was further buoyed by the start of crucial negotiations between Pakistan and the International Monetary Fund (IMF). Talks began on Monday for the second review of the $7 billion Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF). Discussions reportedly revolved around fiscal performance, revenue mobilisation, and progress on structural reforms.
Official sources said the government updated the IMF team on reforms in capital markets, the National Fiscal Pact, and measures to enhance transparency in development spending. Encouragingly, the Fund reportedly sees no major long-term impact of the recent floods on Pakistan’s economic indicators, easing investor concerns about potential disruptions.
Meanwhile, inflation data due on Wednesday is expected to remain under control, with analysts projecting a single-digit rate between 5.5% and 6%. Despite rising food prices, the impact of flooding appears to be less severe than initially feared.
The rally in the KSE-100 index was also driven by ample liquidity in the market. Analysts said rollover week had ended, allowing fresh inflows of institutional and retail funds into equities. Domestic liquidity remains strong, with limited alternative investment options encouraging further participation.
Corporate earnings have also played a crucial role. Banks, fertiliser producers, and exploration companies have posted resilient results, offering attractive valuations and solid dividend yields.
Adding to the positive sentiment is a shifting geopolitical perception. Analysts highlighted that the recent conflict with India has unexpectedly bolstered Pakistan’s global standing, with investors now viewing the country as a resilient and strategic market rather than merely high-risk.
As a result, investor confidence has strengthened, driving the index to unprecedented levels and signaling sustained momentum in the coming weeks.