Investors powered the Pakistan stock market to new heights on Monday, driving the KSE-100 Index beyond 163,000 for the first time in history, as optimism over stabilising fundamentals and deepening foreign ties fuelled another record close.
“The effects of the floods seem milder than expected; therefore, the inflation numbers will remain well within range. This, coupled with the reported conversion of fixed income investment to equity, is causing the market to rerate,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“The macro front and the reduced risk of rollover due to the improving relationships with other countries is also boosting the market sentiments,” he added.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 163,847.68 points, up 1,590.68 points, or 0.98%, from the previous close of 162,257.00.
During the session, the index climbed to an intraday high of 163,903.62 points, gaining 1,646.62 points, or 1.01%, and touched a low of 162,058.64 points, reflecting a drop of 198.36 points, or -0.12%.
Investor confidence remained buoyant after last week’s historic rally, supported by Prime Minister Shehbaz Sharif’s meeting with US President Donald Trump, a landmark Rs1.2 trillion debt settlement agreement with commercial banks, and renewed optimism over Saudi economic engagement.
Analysts expect momentum to sustain in the near term, particularly in the banking, energy and power sectors, though IMF conditionalities and external financing remain critical risk factors.
The Rs1.225 trillion circular-debt financing deal, combined with Pakistan’s push for external funding through Panda bonds and commercial loans, further strengthened market sentiment. The State Bank of Pakistan reported an increase of $22 million in foreign exchange reserves, which stood at $14.4 billion as of September 19, 2025, while the rupee firmed slightly by 0.03% to Rs281.37 against the US dollar.
Key developments included IMF concerns over missed tax targets, a 10% power tariff cut following debt repayment, Japan’s plan to invest in the Reko Diq project, and Pakistan’s request for tariff concessions from China on 700 items.
During the last session on Friday, the KSE-100 gained 2,976.92 points, or 1.87%, to 162,257.01 points from 159,280.09 points recorded in the last session. The highest index of the day remained at 162,422.29 points, while the lowest level was recorded at 159,901.56 points.
