Karachi: Pakistan’s stock market continued its strong upward streak on Thursday. The KSE-100 Index surged to a new all-time high in early trade, reflecting strong investor confidence across key sectors.
The Pakistan Stock Exchange’s (PSX) benchmark index climbed to 120,699.17 points. That marked a gain of 767.72 points, or 0.64%, from the previous close of 119,931.45. Even the day’s low of 120,210.56 showed an increase of 279.11 points, or 0.23%. The bullish trend remained steady throughout the session.
Investor Sentiment Remains Strong
The rally builds on easing geopolitical tensions and hopes of a stable economic plan under the International Monetary Fund (IMF). Investors showed strong buying interest in growth-oriented stocks.
“It’s a continuation of the rally post relief from Indo-Pak war,” said AAH Soomro, an independent investment and economic analyst. “The market remains attractive with more investors consistently deploying funds.”
He added that the IMF-backed budget agreement could drive the KSE-100 Index even higher. “We could see the index climb toward 150,000 within a year,” Soomro predicted.
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GDP Milestone Boosts Morale
Investor confidence also surged after Pakistan’s nominal GDP crossed the $400 billion mark for the first time. According to provisional data from the National Accounts Committee (NAC), the economy now stands at Rs114.7 trillion ($411 billion), up from Rs105.1 trillion ($372 billion) last year.
The NAC also reported GDP growth of 2.68% for the fiscal year 2025. Quarterly growth figures stood at 1.37% in Q1 and 1.53% in Q2, slightly below the government’s 3.6% target.
IMF Talks Influence Market Direction
While markets rallied, budget negotiations with the IMF continued in Islamabad. The IMF has proposed new taxation measures, including doubling the Federal Excise Duty (FED) on fertilisers from 5% to 10%. It also wants a 5% tax on pesticides and the rollout of Agriculture Income Tax (AIT) from July 2025.
Prime Minister Shehbaz Sharif is pushing back. He has urged the IMF to reconsider these measures, warning that they could hurt the agricultural sector.
Despite these tensions, market players remain optimistic that a deal will emerge that balances growth with fiscal discipline.
Wednesday’s Rally Set the Tone
Thursday’s momentum followed a strong session on Wednesday. The KSE-100 Index closed at 119,931.45, up 960.33 points, or 0.81%. That session laid the groundwork for today’s fresh surge.
The PSX’s record-breaking run highlights rising investor optimism in Pakistan’s economic future. Positive GDP figures, easing regional tensions, and continued IMF engagement have created a favorable environment. If the trend continues, market analysts expect more highs in the coming weeks.
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