The Pakistan Stock Exchange (PSX) emerged as one of the world’s top-performing markets in fiscal year 2024–25 (FY25). Its main KSE-100 Index delivered a remarkable 55.5% return in US dollar terms, placing it third globally, according to a report by Arif Habib Limited (AHL). The index also gained 58.6% in PKR terms, rising from 78,445 to 124,379 points by the end of the fiscal year.
Only Ghana and Slovenia performed better. Ghana’s GGSECI Index topped the list with a 140.7% return, and Slovenia’s SBITOP Index followed with 56.7%. In comparison, Pakistan outperformed major developed and emerging markets. For example, the Nasdaq in the US posted only 14%, Germany’s DAX gave 46.9%, India’s Sensex just 3.2%, and Japan’s Nikkei 12.8%.
This strong growth came despite global market challenges. AHL credited the KSE-100 rally to aggressive interest rate cuts, better market liquidity, and unlocking of value in key sectors like banking, energy, and construction. Positive sentiment around IMF talks, fiscal discipline, and stability in the rupee also helped boost investor confidence throughout the year.
At the same time, regional markets experienced massive foreign outflows. According to the report, countries like Taiwan ($28.7B), South Korea ($23.5B), and India ($11.2B) saw the largest withdrawals. Even Vietnam, Thailand, and Malaysia faced multi-billion dollar exits. In contrast, Pakistan’s net foreign outflow was relatively small at $300 million.
AHL explained that global investors moved away from emerging markets due to rising interest rates, a stronger US dollar, and geopolitical tensions. Many shifted capital to developed markets for safety. Despite this, Pakistan stood out by attracting strong local investor activity, which helped KSE-100 achieve this global milestone.