Karachi, June 10, 2025 – The Pakistan Stock Exchange (PSX) has achieved an unprecedented milestone, with its benchmark KSE-100 index reaching an all-time high of 122,024 points on the eve of the federal budget 2024-25 announcement. This remarkable surge reflects a significant uplift in investor confidence and market sentiment.
The KSE-100 index registered a substantial gain of 383 points from its previous close of 121,641 points on June 5, 2025. This impressive rally follows a four-day market closure from June 6 to June 9, observed for the Eid-ul-Adha holidays. Notably, the PSX had previously set a record of 121,799 points on June 4, 2025, underscoring the market’s consistent upward trajectory in recent days.
Market analysts are attributing this record-breaking performance primarily to enhanced optimism surrounding the impending federal budget. Investors appear to be reacting positively to expectations of favorable economic policies and reforms. A strong buying momentum was evident across several key sectors, including commercial banks, fertilizer, oil and gas exploration companies, oil marketing companies (OMCs), and refineries. Several index-heavy stocks, such as Pakistan Refinery Limited (PRL), Warda Financial (WAFI), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Habib Bank Limited (HBL), MCB Bank (MCB), and Meezan Bank Limited (MEBL), all traded in the green, signaling widespread investor interest.
Today, the federal government is poised to present the budget for the fiscal year 2025-26, with an estimated size of Rs 17.6 trillion, in the National Assembly for debate and approval. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, will deliver the budget address and subsequently lay the Finance Bill 2024 in the Senate, adhering to the constitutional requirement under Article 73.
The PSX concluded the pre-Eid trading week on an exceptionally high note, with the KSE-100 index posting a notable 1.63% weekly gain ahead of today’s budget presentation. Despite being a shortened trading week due to the Eid-ul-Adha holidays, investor interest remained robust, driven by positive market sentiment and anticipation of significant economic developments.
Analysts at Topline Securities highlighted that the week’s strong performance was bolstered by optimism surrounding a breakthrough in resolving Pakistan’s long-standing circular debt issue. The government recently finalized a landmark loan package of Rs 1.275 trillion with approximately 18 commercial banks. Furthermore, the approval of an $800 million loan from the Asian Development Bank (ADB) under Pakistan’s public finance program significantly reinforced investor confidence.
This favorable market momentum has materialized despite broader macroeconomic challenges. While the Consumer Price Index (CPI) inflation for May registered a sharp increase to 3.5% from April’s 0.3%, Pakistan’s trade deficit narrowed to $2.6 billion in May, reflecting a encouraging 23% month-on-month decline.