The Pakistan Stock Exchange (PSX) reached a historic milestone by crossing the 149,000-point mark for the first time. The KSE-100 Index gained 1,171 points and closed at 149,367 points, reflecting strong investor confidence and positive market momentum.
Earlier in the trading session, the stock index had already risen by 595 points to 148,791 points, setting the stage for a successful day. Analysts say the stock rally is driven by expectations of stable economic policies and easing inflation.
Investor optimism, both local and international, has increased stock trading volumes. This renewed confidence comes amid hopes of future interest rate cuts and a better economic outlook.
Meanwhile, inflation in Pakistan is expected to ease to around 4% in August 2025, according to a report by Topline Securities. The monthly inflation increase is modest, at about 0.3%, which contrasts sharply with last year’s double-digit inflation rates.
The report notes that inflation was 4.07% in July 2025, compared to 9.63% in August 2024. Annual inflation is forecasted to range between 6% and 7% by the end of the financial year. This forecast aligns with the State Bank of Pakistan’s prediction of 5% to 7%.
With inflation easing, the central bank may cut the policy interest rate by 50 to 100 basis points soon. This could lower borrowing costs for businesses and consumers, further supporting stock market growth.
Topline Securities also highlighted expected price changes in essential commodities. Prices of transport, diesel, tomatoes, onions, and eggs may rise, while fresh fruits, sugar, and chicken prices could decline.
The Pakistan Stock Exchange’s record-breaking performance shows increasing market trust, backed by stable inflation and hopeful economic policies.
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