The Pakistan Stock Exchange (PSX) surged on Tuesday, continuing a promising rally as investors cheered high-level economic reassurances, anticipated policy easing, and upbeat corporate earnings.
The PSX bullish market trend gained momentum after military and government leaders expressed full support for economic stability and growth reforms.
The benchmark KSE-100 Index closed at 139,419.61, marking a gain of 1,202.03 points or 0.87% from the previous session. During the day, the index touched a high of 139,901.77, rising by as much as 1,684.19 points or 1.22%, before dipping slightly to an intraday low of 138,197.81.
“Stocks traded at new all-time highs after a meeting between business leaders and Field Marshal Asim Munir reassured investors of the military’s commitment to supporting economic reforms,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
He noted that expectations of monetary easing in the upcoming State Bank of Pakistan (SBP) policy announcement, along with strong corporate financials and anticipated dividend payouts, further fueled the PSX bullish market trend.
A key driver behind the positive sentiment was a recent meeting between the country’s top business figures—led by former caretaker minister Gohar Ejaz—and Field Marshal Munir. The delegation included prominent names like APTMA Chairman Kamran Arshad, SM Tanvir, and heads of FPCCI and LCCI.
Ejaz highlighted the improving macroeconomic environment during the meeting and reaffirmed the private sector's support for the reform agenda. He also advocated for interest rate cuts and more responsive fiscal policies to stimulate private sector-led growth.
Adding to the momentum was the recent macroeconomic data showing a current account surplus of $328 million in June 2025, helping the country post a $2.1 billion annual surplus for FY25 — Pakistan’s first in 14 years. The surplus, equivalent to 0.5% of GDP, was attributed to strong remittance inflows, tight import controls, and consistent IMF support under the $7 billion programme.
Finance Minister Muhammad Aurangzeb’s recent talks with US officials also bolstered market confidence. He described the discussions—focused on tariff relief and investment cooperation—as a “game changer,” emphasizing the importance of a long-term strategic partnership with the United States.
Meanwhile, the auto sector showed strong signs of recovery, with auto financing jumping 20% year-on-year to Rs277 billion in June. The trend signals growing consumer confidence and a rebound in durable goods demand.
This bullish sentiment comes just a day after the index lost 379.78 points, or 0.27%, showing how quickly momentum has shifted with renewed optimism in the market.
