KARACHI —
The Pakistan Stock Exchange (PSX) continued its bullish momentum on Tuesday, fueled by optimism following Pakistan’s staff-level agreement (SLA) with the International Monetary Fund (IMF) and renewed investor confidence over improving economic indicators.
The benchmark KSE-100 Index closed at 167,346.83 points, gaining 1,103.93 points (0.66%) from the previous session’s close of 166,242.90.
During the day, the market reached an intraday high of 168,197.47 points, reflecting strong buying activity amid expectations of improved liquidity and foreign inflows.
Market experts attributed the rally to a blend of macroeconomic stability and positive corporate developments.
“The successful IMF SLA, anticipation of healthy corporate results, and the planned privatization of First Women Bank are driving investor sentiment,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
He added that discussions about potential Saudi investments and the return of the current account to surplus have further boosted confidence.
According to the State Bank of Pakistan (SBP), Pakistan’s current account posted a $110 million surplus in September, compared to a $325 million deficit in August. This marks a notable turnaround and a temporary cushion for the country’s external finances.
However, in the first quarter of FY2026, the current account deficit widened by 18% to $594 million, suggesting that the surplus may be short-lived.
Saad Hanif, Head of Research at Ismail Iqbal Securities, termed the surplus “a major upside surprise,” noting that analysts were expecting a deficit of $400–$500 million.
“This improvement likely reflects timing adjustments between customs and balance of payments data,” Hanif explained. “While temporary, it could lend short-term support to market stability.”
Investor optimism is expected to persist as corporate earnings season begins and the government’s reform agenda gains traction under IMF oversight.
