On August 4, 2025, the Pakistan Stock Exchange (PSX) started the week on a strong note. The KSE-100 Index reached an intraday high of 142,252.41, an increase of 1,217.43 points (0.86%). It also recorded a low of 141,034.98, reflecting a gain of 405.5 points (0.29%) from the previous closing value of 141,034.98.
On Friday, the market closed at an all-time high of 141,034.98, increasing by 1,644.56 points (1.18%). This marked a weekly gain of 1,828 points (1.31%), driven by investor optimism over corporate earnings and the resolution of circular debt.
Analysts attribute the bullish trend in the market to expectations of strong corporate earnings and progress in addressing the circular debt issue. The Monetary Policy Committee decided to maintain the key interest rate at 11%, despite predictions of a potential cut of 50 to 100 basis points, due to rising inflation. July’s year-on-year headline inflation increased to 4.1%, up from 3.2% in June, driven by a diminishing base effect and mounting cost pressures. Although the Sensitive Price Index (SPI) fell by 0.9% year-on-year in July, it rose by 3.1% month-on-month, indicating ongoing concerns about inflation.
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The Pakistani rupee appreciated for the second consecutive week, closing at Rs 282.72 per USD—an increase of 0.26%. Crackdowns on the black market, initiated after meetings between exchange dealers and intelligence officials, supported this rise. Additionally, the Federal Board of Revenue (FBR) exceeded its revenue target for July by Rs 7 billion, collecting a total of Rs 755 billion. However, the State Bank of Pakistan reported a $153 million decline in foreign exchange reserves, bringing the total to $14.3 billion as of July 25. The reversal of a Rs 7.41 per unit electricity tariff relief further contributed to this decrease.
The upward trend of the PSX indicates increasing confidence in Pakistan’s economy, despite ongoing challenges with inflation and reserves. Investors should pay close attention to corporate earnings and fiscal policies, as these factors will influence market trends.
