The Pakistan Stock Exchange (PSX) extended its bullish run on Wednesday, with the KSE-100 Index climbing 1,347.99 points, or 1.12%, to close at a new all-time high of 121,798.86. This followed Tuesday’s impressive surge of over 1,500 points.
During the session, the index touched an intraday high of 121,882.47, reflecting a gain of 1.19%. Even the session’s lowest point, 120,896.13, showed a notable rise of 0.37% from the previous close of 120,450.87.
Market experts attributed the continued rally to improving economic sentiment, technical indicators, and optimism stemming from positive policy developments.
“Payment of the circular debt coupled with rumours of taxation relief and strong offtake numbers from cement and fertiliser sectors have spurred this broad-based rally,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
He added that the market breaking new highs also triggered fresh buying due to technical signals, pushing the index even higher.
Government-IMF Progress Boosts Economic Outlook
Investor morale received a significant boost after Prime Minister Shehbaz Sharif announced that Pakistan’s negotiations with the International Monetary Fund (IMF) had concluded successfully. Speaking in Peshawar on Tuesday, the premier said the agreement marks a turning point towards economic growth, shifting the government’s focus from mere stabilisation to sustainable development.
According to government sources, Pakistan’s economic team managed to convince the IMF to drop a controversial proposal to increase the Federal Excise Duty (FED) on fertiliser from 5% to 10%. The move is expected to offer relief to the agriculture sector, a key component of the economy.
This breakthrough has further strengthened investor belief that Pakistan is on track for fiscal stability and may soon unlock more external financing opportunities. The positive developments in IMF talks were seen as a key trigger behind the current rally.
ADB Approves $800 Million Package to Aid Fiscal Reform
Adding to the positive momentum, the Asian Development Bank (ADB) on Tuesday approved an $800 million financing package for Pakistan, aimed at supporting the country’s fiscal consolidation and reform agenda.
The package includes a $300 million policy-based loan and a $500 million guarantee, intended to help Pakistan attract additional commercial co-financing. The funding will support key initiatives under the Improved Resource Mobilisation and Utilisation Reform Program, focusing on tax reform, digital governance, and efficient public expenditure.
Market analysts said the ADB’s backing reinforces investor confidence in Pakistan’s long-term recovery and fiscal discipline, which is reflected in the ongoing rally at the bourse.
In the previous trading session on Tuesday, the KSE-100 Index had jumped by 1,573.07 points or 1.32% to 120,450.87, marking a strong start to the week. With back-to-back record-breaking sessions, analysts believe the market could see continued bullish sentiment, especially if economic reforms remain on track and political stability continues.
As optimism grows around economic management and global backing, the PSX remains in sharp focus for both local and foreign investors looking for high-return opportunities.
