The Pakistan Stock Exchange (PSX) opened the week with strong momentum, reaching a fresh all-time high as investors showed confidence in robust corporate earnings and progress on circular debt reforms.
The benchmark KSE-100 Index climbed 1,234.69 points, or 0.85%, to close at 146,617.48. This was up from the previous close of 145,382.79. The index briefly dipped to 145,258.49 during the day before regaining strength.
Market analysts credited the rally to solid financial results, positive sentiment, and improved liquidity. “Strong corporate results and developments on circular debt payments are driving the market’s upward trend,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
Economic indicators offered a mixed picture. Pakistan’s trade deficit widened by 44% year-on-year in July 2025, reaching $2.8 billion due to higher imports. Meanwhile, remittances rose 7% year-on-year to $3.2 billion, though they fell 6% compared to June.
The State Bank of Pakistan’s foreign exchange reserves declined by $72 million week-on-week, standing at $14.2 billion. The rupee appreciated slightly by 0.1% week-on-week, closing at Rs282.47 per US dollar.
In a significant policy move, the government reduced circular debt by Rs780 billion, bringing it down to Rs1.6 trillion. Authorities also announced a five-year privatisation plan for 24 companies, with 10, including Pakistan International Airlines, slated for sale in the first phase.
On the trade front, textile exports surged 33.7% year-on-year in July to $1.69 billion. In the T-bill auction, the central bank raised Rs386 billion, slightly below its Rs400 billion target, with yields increasing by 5-30 basis points across maturities.
Last week, the KSE-100 posted a weekly gain of 3.08%, marking a record-high close of 145,647 points on Thursday before mild profit-taking on Friday. The market’s resilience and investor optimism suggest the upward trend could continue, depending on earnings reports and policy updates.
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