Karachi, December 13, 2025 — The Pakistan Stock Exchange (PSX) posted a strong performance during the week ended December 12, 2025, as bullish sentiment lifted the benchmark KSE-100 Index by 1.66% week-on-week (WoW).
Improved macroeconomic indicators, IMF-related inflows, and stability in the external account helped sustain investor confidence.
According to the weekly market report released by Arif Habib Limited, the KSE-100 Index rose by 2,779 points, closing at 169,865, compared to 167,086 in the previous week. Market momentum was primarily driven by the approval of a $1.2 billion disbursement under the IMF’s Extended Fund Facility (EFF) second review, along with the first tranche of the Resilience and Sustainability Facility (RSF). Additionally, the successful settlement of the Pakistan Energy Sukuk (Phase I) marked a significant step toward easing circular debt pressures in the power sector.
On the external front, remittances from overseas Pakistanis increased 9% year-on-year (YoY) to $3.19 billion in November 2025, compared to $2.92 billion in the same month last year. However, on a month-on-month (MoM) basis, inflows declined by 7%. Cumulatively, remittances during the first five months of FY26 rose 9% YoY to $16.14 billion, strengthening Pakistan’s balance of payments outlook.
In the debt market, the government raised PKR 981.7 billion in the latest treasury bill auction against a target of PKR 1 trillion, with total participation reaching PKR 1,925.1 billion. Yields softened by 1–3 basis points across all tenors, signaling easing inflationary expectations.
In the energy sector, oil production edged up 0.1% WoW to 66,014 barrels per day, while gas output surged 6.1% WoW to 2,917 mmcfd, supported by higher flows from Mari, Uch, and Qadirpur fields. Meanwhile, net metering’s share in total power generation rose 112 basis points YoY in October 2025, reflecting growing solar adoption, despite overall power generation declining 3.7% YoY.
On the industrial side, auto sales fell 11% MoM to 15,400 units in November 2025, though they surged 53% YoY. During 5MFY26, total auto sales increased 48% YoY to 75,000 units.
Foreign exchange indicators also improved, with SBP-held reserves rising by $12 million to $14.6 billion, while the Pakistani rupee appreciated 0.036% WoW, closing at PKR 280.32 per US dollar.
Looking ahead, market sentiment is expected to remain positive. While the upcoming monetary policy decision is likely to keep interest rates unchanged, even a marginal rate cut could further boost equities. The KSE-100 is currently trading at a price-to-earnings ratio of 8.57x, slightly below its 15-year average of 8.80x, offering an attractive dividend yield of around 5.68%.