The Pakistan Stock Exchange (PSX) witnessed a robust recovery on Thursday, with the benchmark KSE-100 Index climbing 1,205.36 points (0.91%) to close at 133,782.34 points. This upward movement marked a significant rebound from Wednesday’s 0.62% decline, driven by positive investor sentiment following the strengthening of macroeconomic indicators.
Banking sector stocks led the charge as investors responded enthusiastically to two major economic developments. First, the State Bank of Pakistan reported record-breaking workers’ remittances totalling $38.3 billion for FY2025, a substantial 26.6% year-over-year increase that surpassed both government targets and annual export earnings. Second, the government’s successful debt auctions raised Rs 1.41 trillion, surpassing its target of Rs 1.35 trillion, which demonstrates strong institutional confidence in Pakistan’s financial stability.
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“Macroeconomic improvements are driving a market rerating, with banks at the forefront,” noted AAH Soomro, an independent economic analyst. “This rally appears sustainable, potentially establishing a new support level above 130,000 points.” The intraday trading session saw the index reach a high of 133,902.34 points before settling slightly lower at close
- June 2025 remittances reached $3.4 billion (7.9% YoY growth)
- SBP reserves grew by $5.12 billion in FY25 to $14.51 billion
- T-bill auction yields showed mixed movements, with 1-month papers rising 24bps to 11.2403%
- Pakistan Investment Bonds attracted Rs208 billion against the Rs300 billion target
The day’s performance contrasted sharply with Wednesday’s downturn, showcasing the market’s volatility amid evolving economic conditions. With foreign exchange reserves now at nearly five times their levels in early 2023 and consistent remittance inflows averaging $3.19 billion per month, analysts suggest that Pakistan’s economic fundamentals may support continued market stability.
