Karachi, September 13, 2025 – The Pakistan Stock Exchange (PSX) is expected to move in line with the broader economic outcome of the recent floods, which have caused severe disruption across the country.
Analysts said that investor confidence remains fragile as markets continue to assess the scale of economic losses caused by heavy rains and devastating floods.
During the outgoing week, the KSE-100 Index traded largely sideways, reflecting caution in the face of uncertainty. The benchmark index closed at 154,440 points, showing a marginal gain of 163 points, or 0.1% on a week-on-week basis. Analysts noted that profit-taking, combined with anxiety over the long-term damage from floods, limited any significant upward movement.
Despite these challenges, Pakistan has achieved several positive economic developments. The government announced plans to launch its first-ever Panda Bond worth USD 250 million, aimed at diversifying funding sources and strengthening foreign exchange inflows. At the same time, remittances by overseas Pakistanis rose by 7% year-on-year in August 2025, reaching USD 3.14 billion, though they slipped slightly by 2% on a month-to-month comparison.
In the auto sector, sales showed remarkable momentum. According to the Pakistan Automotive Manufacturers Association (PAMA), sales surged to 14,050 units in August, marking a 27% increase month-on-month and a robust 62% jump year-on-year. Cumulative sales in the first two months of FY26 climbed by 45% year-on-year to 25,100 units.
Meanwhile, central government debt continued to rise, reaching PKR 77.9 trillion in June 2025, up 2.4% from the previous month. Net investments through the Roshan Digital Account (RDA) totaled USD 1.525 billion between September 2020 and August 2025. The State Bank of Pakistan’s reserves edged higher to USD 14.3 billion, up by USD 34 million week-on-week, while the Pakistani rupee closed steady at 281.56 against the US dollar.
Looking ahead, investor focus will remain on two fronts: the monetary policy announcement scheduled for Monday and the evolving situation of ongoing floods, which could further test the resilience of Pakistan’s economy and market sentiment.