KARACHI – The Pakistan Stock Exchange (PSX) kicked off the New Year with a remarkable surge, crossing the 176,000-point mark for the first time in its history, driven by a strong buying spree.
During Thursday’s intraday trading, the KSE-100 index surged by 2,078 points, reaching an all-time high of 176,132.52 points, compared to the previous close of 174,054.32 points.
The rally was particularly strong in sectors like cement, oil and gas, packaging, and fertilizers, with investors displaying strong confidence in the market on the first trading day of 2026.
Pakistan’s economy is showing positive growth, supported by a broad industrial recovery, strong agricultural performance, and effective fiscal policies that resulted in a surplus for the first quarter of FY2026, according to the Federal Ministry of Finance’s Monthly Economic Update and Outlook for December 2025.
The country’s GDP grew by 3.71% during the first quarter of FY2025-26, driven by a robust 9.38% increase in industrial output, a steady 2.89% growth in agriculture, and a 2.35% rise in services.
High-frequency data also highlights the positive trend, with remittances from overseas workers rising, and foreign exchange reserves reaching $21 billion as of December 19—the highest level since March 2022.
This includes $15.9 billion held by the State Bank of Pakistan (SBP).
In addition, Pakistan’s successful completion of an IMF review unlocked $1.2 billion under the Extended Fund Facility and the Resilience and Sustainability Facility, providing further support to reserves and ensuring economic stability.
