Karachi, April 4, 2025 – The Pakistan Stock Exchange (PSX) reached an all-time high on Friday, trading at an impressive 120,749 points, fueled by the government’s significant tariff cuts.
The record-breaking rally was a direct response to the government’s move to reduce electricity tariffs, which sent a wave of optimism through the market. As trading progressed, the benchmark KSE-100 Index surged past the 120,000 level, achieving a new record during the first half of the session with a gain of nearly 1,700 points.
At 10:10 am, the PSX stood at 120,749 points, reflecting an increase of 1,810 points, or 1.52%. This growth was driven by strong buying interest across several key sectors, including cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and refineries. Index-heavy stocks, including ARL, NRL, MARI, PPL, DGKC, HBL, MCB, MEBL, NBP, and UBL, all traded in the green, adding to the positive momentum.
The rally follows the government’s announcement of substantial tariff cuts for electricity consumers. On Thursday, Prime Minister Shehbaz Sharif revealed that residential electricity prices would drop by Rs7.41 per unit, while industrial consumers would benefit from a reduction of Rs7.69 per unit. These tariff cuts are part of the government’s broader strategy to alleviate inflationary pressures on the public and stimulate economic growth. Moreover, Shehbaz Sharif assured that further reductions in electricity tariffs would follow as the economy continues to improve, a development that is welcomed by both businesses and consumers.
To make these tariff cuts possible, the Prime Minister also mentioned that extensive negotiations had been held with the International Monetary Fund (IMF), which required considerable effort to reach an agreement. These efforts to secure favorable terms with the IMF reflect the government’s determination to ease the financial burden on the Pakistani public.
“Despite global market downturns, the PSX’s crossing of the 120,000-point mark signals optimism, particularly with expectations of improved earnings following the government’s tariff reductions and efforts to tackle circular debt,” commented Mohammed Sohail, CEO of Topline Securities.
On Thursday, the PSX had already demonstrated resilience, closing at an all-time high of 118,938 points. The stock market’s performance is closely tied to expectations of continued policy reforms and tariff adjustments, which are expected to support the recovery of Pakistan’s economy. The continued strength of the PSX signals growing investor confidence in the country’s economic future.