The Pakistan Stock Exchange (PSX) has reached a historic milestone, crossing the 150,000 mark for the first time, with the KSE-100 Index closing at 149,770.74 points on Tuesday. This surge comes amid positive economic forecasts and expectations of energy sector reforms, bolstering investor confidence.
On Tuesday, the Pakistan Stock Exchange (PSX) saw a remarkable surge, with the benchmark KSE-100 Index climbing by 1,574.32 points, or 1.06%, to settle at 149,770.74 points. The index briefly hit an intraday high of 150,323.38, marking a 1.44% increase or 2,126.96 points from the previous close. Despite a session low of 148,293.94, the overall positive sentiment prevailed as the market continued its upward trajectory.
Market analysts attribute this positive momentum to the liquidity provided by mutual funds and investor optimism about the country’s economic outlook. “Mutual funds liquidity is rerating the market. Plenty of cash taking medium term view. Valuations are not cheap anymore,” said AAH Soomro, an independent investment and economic analyst.
In addition to domestic factors, international factors have also contributed to the market’s growth. Fitch Ratings recently upgraded Pakistan’s sovereign credit outlook, forecasting real GDP growth of 3.5% by 2027, up from 2.5% in 2024. This projection, based on improving fiscal performance and reforms, has further lifted investor sentiment. The upgrade by Moody’s, which raised Pakistan’s credit rating from ‘Caa2’ to ‘Caa1,’ has reinforced this optimism.
One of the key drivers of market sentiment has been the announcement of reforms in the energy sector. The government’s Task Force on Power unveiled a comprehensive plan aimed at reducing the country’s gas circular debt, which currently stands at Rs2,600 billion. The strategy involves imposing a petroleum levy, generating funds from state-owned oil and gas companies, and diverting LNG cargoes to international markets. The plan is expected to reduce the debt by Rs1,500 billion and ease financial pressures in the energy sector.
As the market continues to react positively to these developments, investors are hopeful that these reforms will lead to long-term stability and growth, helping maintain the upward trend on the PSX.
