On July 15, 2025, the Pakistan Stock Exchange (PSX) continued its impressive rally. The benchmark index reached an intraday high of 137,678.91 points, marking a gain of 1,176.38 points, or 0.86%, from the previous close. The surge reflects strong investor confidence, and positive economic indicators include record-level remittances and an increase in foreign reserves.
The index began the day on a strong note but experienced some volatility. During the session, it fell to a low of 136,829.16 points. However, by the close, it settled higher, maintaining the upward trend that started with a gain of 2,202 points on July 14. Trading volume was robust, with millions of shares exchanged throughout the day.
On July 14, the index crossed 136,000 for the first time, closing at 136,503. Year-to-date, the index has risen over 26%, with a one-year return of about 68%.
Read: PSX Soars to Historic High as KSE-100 Crosses 135,000 Points
Several factors contributed to a positive sentiment. Workers’ remittances reached a record $38.3 billion for FY25, representing a year-on-year increase of 26.6%. In June 2025 alone, these inflows amounted to $3.41 billion, reflecting a 7.9% rise compared to the previous year. The highest contributions came from Saudi Arabia, followed by the UAE and the UK.
Foreign exchange reserves in Pakistan have shown significant improvement. As of July 4, 2025, the State Bank of Pakistan (SBP) reported reserves of $14.5 billion, an increase of $1.8 billion from the previous week. When accounting for commercial banks, total reserves exceed $20 billion, marking the highest level in 39 months. Additionally, strong auto sales have contributed to an overall sense of optimism in the economy.
Finance Minister Muhammad Aurangzeb suggested that there may be potential for interest rate cuts in the future. He indicated that there is room for easing, although the final decision rests with the State Bank of Pakistan (SBP). In its most recent meeting, the SBP maintained the policy rate at 11%, citing concerns about inflation. The bank previously cut rates by 100 basis points in May and has reduced them by a total of 1,100 basis points since June, down from a peak of 22%.
