Karachi, June 3, 2025 — The Pakistan Stock Exchange (PSX) soared to an all-time high on Tuesday, closing at 120,451 points as investor confidence surged ahead of the federal budget 2025-26, scheduled for June 10.
The benchmark KSE-100 index of the PSX gained 1,573 points, or 1.32%, from the previous day’s close of 118,878 points. This marks a new historic high, surpassing the earlier record of 119,962 points set on May 15, 2025. Market participants welcomed the positive sentiment surrounding the upcoming budget, anticipating pro-growth measures and continuity of economic reforms.
Analysts say Tuesday’s rally was driven by optimism over the federal budget following the government’s successful negotiations with the International Monetary Fund (IMF). Reports confirmed that an understanding had been reached on the fiscal framework for FY26, reinforcing hopes for macroeconomic stability.
Prime Minister Shehbaz Sharif on Monday confirmed that discussions with the IMF had concluded positively, laying the groundwork for a “new phase of economic growth.” This assurance bolstered investor confidence, resulting in broad-based buying across the PSX.
Key sectors contributing to the market’s upward trajectory included cement, commercial banking, oil and gas exploration, oil marketing companies (OMCs), and power generation. Index-heavy stocks such as HUBCO, SNGPL, SSGC, OGDC, PPL, MCB, MEBL, and UBL traded firmly in the green, leading the PSX’s rally.
The bullish momentum also reflects expectations that the budget will include investor-friendly policies, particularly tax incentives and public spending plans that could stimulate industrial growth. Traders are now closely watching for detailed allocations and policy directions in the upcoming budget.
With the PSX entering uncharted territory, analysts believe that market performance will remain closely tied to the tone and content of the FY26 budget. Any indication of fiscal discipline, developmental expenditure, and investment incentives will be critical for sustaining this positive trend.
As anticipation builds for the June 10 budget announcement, the PSX continues to benefit from rising investor confidence and hopes of long-term economic reform.