The Pakistan stock market today moved in a narrow range on Friday as investor activity remained steady. Mutual fund buying, strong corporate earnings, and optimism over the country’s economic outlook kept the momentum alive.

The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) hit an intraday high of 147,534.41 points, gaining over 1,000 points before easing to 146,894.62 points, a slight dip of 33.48 points.

Analysts believe the current stability is driven by earnings season and mutual fund liquidity. “Better results and expectations of further improvement in the economic environment are driving the market,” said Samiullah Tariq, Head of Research at Pakistan Kuwait Investment Company.

Investor confidence also got a boost after Moody’s upgraded Pakistan’s credit rating from Caa2 to Caa1. The agency cited improved foreign reserves, progress on IMF reforms, and a broader tax base as key positives. However, it warned that debt affordability remains among the weakest globally, with political uncertainty still high.

Read More: Moody’s upgrades Pakistan credit rating to Caa1 with stable outlook

This is the third rating upgrade in four months, following similar moves by S&P Global Ratings and Fitch Ratings. Experts say this reflects the government’s commitment to fiscal reforms and economic stability.

According to Bloomberg data, Pakistan topped the global charts for equity returns in USD for FY24–FY25 combined. In FY25 alone, the country ranked eighth globally, outperforming regional markets such as India’s Sensex and China’s stock market.

The State Bank of Pakistan projects GDP growth between 3.25% and 4.25% for FY26 and expects foreign reserves to reach $15.5 billion by December 2025.