The Pakistan Stock Exchange (PSX) celebrated historic gains in the week ending September 29, 2025. The KSE-100 index crossed 162,000 points for the first time. It closed at 162,257 points. The benchmark rose 2.7% week-on-week, driven by strong investor confidence from geopolitical developments and economic milestones.
The market’s momentum stemmed from Prime Minister Shehbaz Sharif’s meeting with US President Donald Trump at the White House on September 25. Additionally, a Rs1.275 trillion power sector circular debt agreement with 18 banks boosted confidence. There was also anticipated Gulf support. Average daily trading volume hit 1.67 billion shares, valued at Rs60 billion, signaling robust participation.
The Rs1.275 trillion financing facility is the largest in Pakistan’s history. It addressed a Rs1.6 trillion debt, down from Rs2.3 trillion the previous year. This deal, involving Habib Bank, Meezan Bank, and others, enhances liquidity and stability. A Rs3/unit surcharge will be used to fund repayments over five years. PM Sharif called it a “significant milestone.” He credited his team and noted the IMF’s praise for the reforms.
Read: KSE-100 Soars to Record High of 160,647 Points Amid Buying Rally
Exploration and production (E&P) and power sectors led, adding 1,084 and 888 points, respectively. Commercial banks contributed 955 points. Fertiliser sales surged in August, with urea and DAP offtakes up 46% and 53% year-on-year. Top gainers included K-Electric (+23.8%), Bestway Cement (+17.6%), and Hub Power (+12.7%). Laggards, such as Tariq Glass Industries (-7.4%), tempered gains.
Foreign exchange reserves rose $58 million week-on-week to $19.79 billion, with SBP holdings at $14.38 billion. The rupee appreciated 0.03% to Rs281.37/USD. Crude oil imports fell 16.3% year-on-year in August, while petroleum products rose 3.8%. Oil production increased 2.7% to 64,313 barrels/day, and gas output grew 2.8% to 2,812 million cubic feet/day.
Mutual funds and individuals net bought $35.6 million and $6.7 million, respectively. Meanwhile, banks and foreigners sold $15.8 million and $13.7 million. Arif Habib Ltd noted the KSE-100’s forward P/E ratio at 8.52x for 2026. It is near its 15-year average, offering a 6.2% dividend yield. The IMF review looms as a key focus.
