The Pakistan Stock Exchange (PSX) saw a positive trend on Friday as strong corporate earnings, active mutual fund participation, and optimism over economic improvements lifted investor sentiment. The benchmark KSE-100 Index reached an intraday high of 147,534.41 points, gaining 1,005.11 points, or 0.69%, before easing to 146,894.62 points, reflecting a slight decline of 33.48 points, or 0.02%.
Market experts highlighted that trading remained range-bound, driven mainly by liquidity from mutual funds and the ongoing earnings season. They noted that Moody’s recent credit rating upgrade has already been factored into prices. Analysts also pointed out that better-than-expected financial results and expectations of further economic improvement continue to fuel market resilience.
Earlier this week, Moody’s upgraded Pakistan’s credit rating from Caa2 to Caa1, citing an improved external position and progress on reforms under the IMF Extended Fund Facility. The agency predicted that foreign exchange reserves will keep improving, supported by fiscal reforms and a broader tax base, although debt affordability remains one of the weakest globally.
This marks the third credit rating upgrade for Pakistan in four months, following similar moves by S\&P Global Ratings and Fitch Ratings. Analysts say these upgrades are backed by the government’s commitment to fiscal discipline and structural reforms. Additionally, Pakistan secured the top spot globally for equity returns in USD over FY24–FY25 combined, outperforming key markets in the region.
The State Bank of Pakistan’s latest Monetary Policy Report projected GDP growth between 3.25% and 4.25% for FY26, with the current account deficit expected to stay within 1% of GDP. The policy rate remains at 11%, keeping real interest rates positive to help stabilize inflation, while foreign reserves are forecast to hit \$15.5 billion by the end of December 2025.
On Wednesday, the KSE-100 Index had closed lower by 476.02 points at 146,529.31, with the day’s highest level recorded at 147,892.25 points. Despite short-term fluctuations, analysts believe strong fundamentals and policy stability could sustain market momentum in the coming months.