The Pakistan Stock Exchange (PSX) surged to a new record high on Tuesday, crossing the 149,000-point mark for the first time in history. Improved economic indicators and easing inflation have boosted investor confidence, pushing the benchmark KSE-100 index upward.
By midday trading, the KSE-100 index had gained more than 1,000 points, reaching 149,211.15. The strong rally followed Monday’s bullish session, when the index closed at 148,196.42 after rising 1,704.79 points, a gain of 1.16 percent.
Trading activity remained robust as 610 million shares, worth Rs39.17 billion, were exchanged. Out of 487 companies that traded their shares, 283 recorded gains, 175 saw losses, while 29 remained unchanged.
The positive momentum at the PSX comes after Fitch Ratings released a report highlighting improved opportunities for Pakistan’s banking sector. The report said banks are set to benefit from better operating conditions as macroeconomic pressures ease.
Fitch also noted that Pakistan’s sovereign credit profile has improved, reflecting in its April 2025 upgrade of the country’s Long-Term Issuer Default Rating (IDR) to ‘B-’/Stable from ‘CCC+’. This upgrade was supported by ongoing reforms, economic recovery, and stronger fiscal performance.
The report highlighted that Pakistan’s inflation has eased significantly. Consumer price inflation fell to 4.1% in July 2025, down from a peak of 38% in May 2023. The halving of the policy rate to 11% since May 2024 and a more stable external position have further strengthened investor confidence.
Fitch projects Pakistan’s GDP growth to rise to 3.5% by 2027 from 2.5% in 2024. The combination of lower interest rates and a healthier economy is expected to boost private credit demand, reduce banks’ reliance on public-sector lending, and sustain the strong momentum at the PSX.
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