Abdul Ghani

Pakistan’s stock market continued its spectacular rally in August 2025, with the benchmark KSE-100 Index gaining more than 9,200 points in a single month to close at an all-time high of 148,617, according to the Monthly Economic Update & Outlook – September 2025 released by the Finance Division.

Market capitalization rose by Rs.952 billion during the month to reach Rs.17,655 billion. By September 26, 2025, the index climbed further to 162,257, while market capitalization expanded to Rs.19.04 trillion, equivalent to $67.7 billion.

The Finance Division attributed the bullish momentum to multiple factors, including improved investor confidence, declining inflation, fiscal discipline, and expectations of stable monetary policy. Foreign exchange reserves also remained comfortable at $19.8 billion as of September 19, 2025, with $14.4 billion held by the State Bank of Pakistan, adding to positive market sentiment.

The report further highlighted that 7,345 companies were incorporated in the first two months of FY2026, reflecting a 26.4 percent year-on-year increase in new business registrations. This surge in corporate activity indicates growing confidence among domestic investors and entrepreneurs.

The Finance Division concluded that the sustained performance of the stock market underscores the private sector’s optimism regarding Pakistan’s macroeconomic stability, despite the challenges posed by recent floods and external pressures.

Credit: INP-WealthPk