The Pakistan Stock Exchange (PSX) achieved a historic milestone on Tuesday, crossing 111,000 points for the first time, on the back of strong economic indicators and rising remittance inflows.
The KSE-100 index rose 1,044.35 points, or 0.95%, to an intraday high of 111,014.73, after closing at 109,970.38 on Monday. It reflects the continued optimism of investors as the market extends its unprecedented profit streak.
The rally underscores improved sentiment around Pakistan’s economic outlook, driven by falling inflation, strong foreign reserves, and rising economic activity. Investors are encouraged by ongoing reforms and the prospect of further monetary easing, which will set the stage for continued market momentum in the coming days.
According to the State Bank of Pakistan (SBP), remittances reached $14.8 billion during the first five months of fiscal year 2025, a year-on-year increase of 33.6 percent. November alone saw $2.9 billion inflows, up 29.1 percent from the same month last year, though slightly lower than October’s figure.
Key drivers behind this growth include a stable rupee, government incentives for banks and money exchangers, and increased migration. Over one million skilled professionals have left Pakistan in the last three years, leading to a significant increase in government remittances. Moreover, efforts to curb illicit currency trading and curb global inflation have further reinforced this positive trend.
Broader macroeconomic improvements have fueled market optimism. Inflation fell to 4.9 percent in November, the lowest since April 2018, opening the door to possible monetary easing. Saudi Arabia’s decision to extend $3 billion in deposits for another year and $560 million in trade deals have bolstered foreign reserves and investor confidence.
Economic activity is also strong, with petroleum sales hitting a 25-month high of 1.58 million tonnes in November. Additionally, the government’s successful Ijara Sukuk auction of Rs 353 billion has added liquidity to the financial system.
The PSX extended its rally for the ninth consecutive session on Monday. The KSE-100 index closed at 109,970.38, up 916.43 points or 0.84 percent from an intraday high of 110,248.98.
The State Bank of Pakistan monetary policy meeting on December 16 is an important event for investors, with a significant rate cut expected to provide additional momentum to the market.