Karachi, September 20, 2025 – The coming week at the Pakistan Stock Exchange (PSX) is expected to remain heavily influenced by the upcoming review talks between Pakistan and the International Monetary Fund (IMF), scheduled for September 25, 2025. Market watchers believe that investors will be keeping a close eye on these discussions, as their outcome may set the direction for equities in the near term.
According to analysts at Arif Habib Limited, the sentiment of investors will remain linked to the IMF’s stance on Pakistan’s economic reforms, fiscal discipline, and structural adjustments. Any positive signals from the talks could lift confidence, while delays or uncertainty may trigger caution across the trading floor.
The KSE-100 Index maintained a strong performance this week, closing at 158,037 points with a gain of 3,598 points, or 2.33% week-on-week. This upward movement was largely driven by optimism following the Saudi-Pakistan defence pact and improved external support expectations. The index is currently trading at a forward PER of 7.8x (2026), compared to its 15-year average of 8.59x, while offering a dividend yield of 5.8%, slightly below the long-term average of 6.13%.
On the macroeconomic side, the State Bank of Pakistan (SBP) held the policy rate steady at 11%, citing caution due to ongoing flooding. August’s current account deficit narrowed to USD 245 million compared to July’s USD 379 million. Meanwhile, Large Scale Manufacturing (LSMI) posted strong growth of 8.99% year-on-year, while power generation rose 8% to 14,218 GWh.
Other notable developments included technology exports of USD 337 million in August, SBP reserves improving to USD 14.4 billion, and the PKR appreciating slightly by 0.03% to close at 281.46 against the USD.
Overall, analysts expect investors to adopt a watchful approach in the coming week, with IMF negotiations acting as the primary market driver.