The Pakistan Stock Exchange (PSX) surged to a record high on Monday, driven by optimism over a potential investment by the United Arab Emirates (UAE) in the Fauji Foundation.

The move, aimed at settling a $1 billion rollover liability, boosted investor confidence and fueled a strong rally across the market.

The benchmark KSE-100 Index climbed to an intraday high of 174,411.72 points, gaining 2,010.99 points (1.17%), while the day’s low of 173,200.41 still reflected a gain of 799.68 points (0.46%).

According to Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, the bullish activity stemmed from investors closely watching the UAE’s potential acquisition of Fauji Foundation shares, coupled with the nearing end of the $1 billion rollover liability.

Government plans to privatize struggling state-owned enterprises, relative stability of the Pakistani rupee, and rising global oil prices also acted as catalysts for market optimism.

Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar noted that the UAE’s share acquisition is expected to be completed by March 31, 2026, potentially helping settle the $1 billion liability, with discussions ongoing for reinvesting a further $2 billion due in January.

Independent analyst AAH Soomro highlighted that the announcement sparked a rally in Fauji Group companies, significantly driving the market upward.

Meanwhile, Advisor to the Finance Minister Khurram Schehzad celebrated the milestone, noting that since January 2025, the PSX has delivered over 50% returns in US-dollar terms, with the equity investor base growing to over 450,000, a 37% increase in 18 months.

The week had already shown strong momentum, as the KSE-100 Index closed Friday at 172,400.73 points, up 1,570.51 points (0.92%) from the previous session.

Analysts believe this record-breaking surge reflects renewed investor confidence in Pakistan’s equity market, underpinned by strategic foreign investments and economic reforms.