The Pakistan Stock Exchange (PSX) celebrated a massive rally on Thursday, September 18, 2025, with the KSE-100 index climbing 1,775.65 points (1.14%) to close at a record 157,953.46. The surge was driven by investor excitement over the new PSX Saudi defence pact, which is part of the Strategic Mutual Defence Agreement with Saudi Arabia, boosting confidence in Pakistan’s economic and security future.
Pakistan and Saudi Arabia signed the landmark pact on Wednesday, September 17, committing to treat any external aggression against one as an attack on both, under the umbrella of the PSX Saudi defence pact. The agreement enhances military cooperation, training, and defence industry ties. Officials say it strengthens regional stability and opens doors for Saudi investments in Pakistan, fueling the market’s optimistic response.
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— PSX (@pakstockexgltd) September 18, 2025The KSE-100 hit an intra-day high of 158,000 before settling near its peak. Strong buying in banking, energy, and cement sectors led the gains. Meezan Bank, United Bank, and Hub Power were top performers. Trading volumes reached the second-highest level, with 1.5 billion shares exchanged, valued at Rs50 billion. Of 485 companies, 280 rose, 178 fell, and 25 stayed flat. This was further boosted by the PSX’s enthusiasm regarding the Saudi defence pact.
Read: Pakistan and Saudi Arabia Sign Historic Mutual Defence Agreement
The pact’s signing, combined with the State Bank of Pakistan’s steady 11% policy rate, dispelled uncertainty. Under the PSX Saudi defence agreement, Pakistan’s ability to meet $26.1 billion in FY26 external debt obligations, including $3.5 billion already handled, added to the positive sentiment. Analysts predict the KSE-100 could reach 160,000 soon, supported by improved foreign reserves and corporate earnings.
The Saudi pact signals stronger bilateral ties, potentially unlocking investments and skilled labour exports. It reassures investors amid regional tensions, driving the PSX to new heights. The rally reflects optimism about Pakistan’s economic reforms and security partnerships, benefiting businesses and the public.
The PSX’s 1,700-point surge after the Pakistan-Saudi defence pact marks a historic day for the market. With the KSE-100 at 157,953, Pakistan’s economy looks brighter. Stay tuned for more on this exciting development under the influence of the PSX Saudi defence collaboration.
