On June 12, 2025, the Pakistan Stock Exchange (PSX) soared to a historic high, with the KSE-100 Index crossing 126,000 points for the first time, driven by investor confidence in the 2025-26 federal budget and a record $3.7 billion in remittances.
The KSE-100 Index surged to an intraday high of 126,220.26, gaining 1,867.58 points, or 1.5%, before settling with a 454.41-point rise at its low of 124,807.09. The milestone follows a 2,328.24-point, or 1.91%, jump on June 11, closing at a record 124,352.68. Analysts attribute the rally to the budget’s fiscal discipline and unchanged capital gains tax policy, boosting market sentiment.
May 2025 remittances reached $3.7 billion, the second-highest monthly inflow ever, up 16% from April and 13.7% from May 2024. The fiscal year’s first 11 months saw $34.9 billion, a 28.8% increase from $27.1 billion in FY24. Experts link this to IMF-backed economic reforms, exchange rate stability, and increased use of formal banking channels, amplified by Eid-related transfers.
Read: Pakistan Budget 2025-26: Highlights, Tax Reforms & Proposals
In a June 11 auction, the government raised Rs853 billion in Market Treasury Bills, just shy of the Rs900 billion target, against bids of Rs2,992 billion. Cut-off yields dropped across tenors: one-month to 11.09% (-1bps), three-month to 11.05% (-10bps), six-month to 10.97% (-22bps), and 12-month to 10.95% (-25bps). The decline reflects investor confidence in Pakistan’s monetary policy.
The PSX rally reflects optimism about Pakistan’s economic recovery, which is supported by IMF programs and remittance growth. The budget’s focus on fiscal discipline and structural reforms positions Pakistan for sustained growth, with analysts eyeing further market gains.
