KARACHI – Pakistan Stock Exchange (PSX) is gearing up for another year of impressive gains, as Karachi based brokerage house forecasted KSE-100 Index to surpass 200,000 points by December 2026.
A report by Topline Securities Ltd. shows bullish outlook is with expected earnings growth of 7percent. The report highlighted several powerful triggers for market momentum next year including delayed Qatar LNG shipments, zero circular debt in the gas and power sectors, potential clearance of gas sector circular debt, PIA privatization, Eurobond/Sukuk launches with improved credit ratings, implementation of the new NFC formula, better relations with India and Afghanistan, financial closure of the Reko Diq project, and anticipated FY27 budget reliefs for exporters and industries.
Pakistani investors are rushing into equities, shifting away from low-yield fixed-income instruments, while traditional assets like USD, gold, and property are either unattractive or restricted.
Equities now account for 14% of mutual fund assets, up from 7% in 2024, with expectations to reach 18–20% by the end of 2026.
Topline projects GDP growth of 3–3.5% in FY26, rising to 3.75–4.25% in FY27, while the rupee is expected between Rs285–290 by mid-2026 and Rs290–295 by year-end. Inflation, driven by floods, is forecast at 6.5–7.5% in FY26 and 7.5–8.0% in FY27 (0.56% MoM).
Investor optimism is at an all-time high, 93% of foreign investors expect positive returns in 2026, with 86% planning to maintain or increase exposure. With foreign ownership at a decade low and macro indicators stabilizing, the PSX is positioned for a potential breakout year.
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