The Pakistan Stock Exchange (PSX) witnessed a strong rebound on Tuesday, with the KSE-100 Index reaching an intraday high of 139,901.77 points. It gained 1,684.19 points, or 1.22%, before slightly dipping later in the day. Investors responded positively to expectations of policy reforms, interest rate cuts, and impressive corporate earnings, driving bullish activity across sectors. Earlier on Monday, the market had faced a mild setback, dropping by 379.78 points.
The rally gained strength after a high-profile meeting between Pakistan’s top business leaders and Field Marshal Asim Munir. Business leaders expressed confidence in the government’s economic direction and received assurance of military support for economic progress. Led by Gohar Ejaz, the delegation discussed reforms, macroeconomic improvements, and the need for lower interest rates to promote private-sector growth.
Ahsan Mehanti, CEO of Arif Habib Commodities, said the index hit a new record high due to optimism about policy changes and the upcoming State Bank of Pakistan (SBP) monetary policy announcement. He added that expectations of strong financial results and corporate payouts further encouraged market participation. Investors are now watching for key updates from the government and the SBP’s rate decision next week.
Adding to investor confidence, Finance Minister Muhammad Aurangzeb held talks with US officials over the weekend. He highlighted Pakistan’s desire for tariff relief and long-term strategic partnerships, especially in technology and investment sectors. He called the discussions a “game changer” for the economy and praised the US as Pakistan’s top trade partner.
Furthermore, Pakistan’s macroeconomic indicators offered more reasons for optimism. The country posted a current account surplus of \$328 million in June 2025, closing the fiscal year with a full-year surplus of \$2.1 billion for the first time in 14 years. This boost was driven by record-high remittances, reduced imports, and consistent IMF disbursements.
Meanwhile, the auto sector also showed signs of improvement. Auto financing jumped by 20% year-on-year in June to reach Rs277 billion. This growth points toward a recovery in consumer demand and rising confidence in long-term economic stability. Overall, analysts expect the PSX to remain strong amid improving sentiment and ongoing economic reforms.