The Pakistan Stock Exchange (PSX) soared to another record high on Tuesday, fueled by robust corporate earnings, heavy institutional buying, and optimism over the finalisation of US investment commitments under a recently signed trade agreement.
During the session, the benchmark KSE-100 Index touched an all-time intraday peak of 147,976.98 points, gaining 1,047.14 points or 0.71% from the previous close of 146,929.84. The lowest level of the day was 147,309.18 points, still 379.34 points higher than Monday’s close.
Market analyst and Arif Habib Commodities CEO, Ahsan Mehanti, attributed the rally to “record remittances of $3.2 billion in July 2025, stability in the rupee, and expectations of higher exports amid the ongoing India-US tariff dispute.” He noted that these factors acted as “key catalysts” for the bullish close.
Independent investment analyst AAH Soomro highlighted that “mutual fund investments are sustaining market momentum, supported by strong financial results, improving US-Pakistan ties, and a macroeconomic re-rating.” He also pointed to optimism around the government’s efforts to resolve circular debt.
Pakistan and the US are reportedly in the final stages of negotiations over the finer details of their trade agreement, which is expected to bring significant investment flows. The government is seeking improved tariff concessions on select exports, building on a 19% tariff reduction agreed upon last month.
On the domestic policy front, the government has advanced reforms in the power sector, reducing circular debt by Rs780 billion to Rs1.6 trillion. As of May 2025, the total circular debt stood at Rs2.47 trillion. Of this, Rs1,275 billion has been arranged through a six-year loan at a 3-month KIBOR minus 0.9% rate, with repayments collected through the Debt Service Surcharge on electricity bills.
The reforms include tariff renegotiations with independent power producers (IPPs), privatisation of four distribution companies, reduction of technical losses, and investment in least-cost power generation projects.
According to Gallup Pakistan’s Q2 2025 Business Confidence Survey, business sentiment is now at its highest point in nearly four years. The ‘Direction of the Country Score’ improved to -2%, with 46% of respondents rating the current government’s economic management better than its predecessor, up from 24% last year.
On Monday, the KSE-100 Index had already posted significant gains, climbing 1,547.05 points (1.06%) to close at 146,929.84.
