Pakistan Stock Exchange records record-breaking gains, surpassing 166,000 points; learn 3 major reasons for this surge:

News Topical, Digital Desk : The Pakistan Stock Exchange (PSX) on Tuesday set a new historical record. The KSE-100 index crossed the 166,000 mark for the first time, closing at 165,493.58 points, up 1,645.90 points or nearly 1% from the previous close of 163,847.68.

Trading Trends and Surges
During today's session, the index touched an intraday high of 166,556.29, representing a gain of 2,708.61 points, or 1.65%. The lowest level was 164,208.33, representing a gain of 360.65 points, or 0.22%. This rise reflects investor confidence and risk appetite.

Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, told Dawn News that improved Pakistan-US relations have kept investors enthusiastic. The strengthening of the Indian rupee, foreign direct investment (FDI) from Saudi Arabia, and the Pakistan-Saudi defense agreement have fueled the market rally. The impact of economic reforms and stability has also contributed to Pakistan agreeing on a circular debt financing agreement worth ₹1.225 trillion, which will strengthen its financial position with the help of commercial banks. An increase in foreign funding and new business schemes like Panda bonds are also supporting this growth. Foreign exchange reserves have reached $14.4 billion, indicating a strengthening rupee.

Economic Growth Expectations The Asian Development Bank (ADB) stated in its September 2025 report that Pakistan's real GDP growth is expected to be 3% in the 2026 fiscal year. However, inflation could rise to around 6%. Balancing the IMF's economic reform plans and the damage caused by recent floods remains a challenge for the country.