The Pakistan Stock Exchange (PSX) ended marginally higher on Tuesday after briefly hitting an intraday record, driven by robust financial results, institutional investments, and optimism over finalizing US investment commitments under the newly signed trade agreement. The benchmark KSE-100 Index closed at 147,005.32 points, up 75.48 points (0.05%), following a volatile session where it surged to 147,976.98 before retreating slightly.
Ahsan Mehanti, CEO of Arif Habib Commodities, attributed the bullish trend to record-high remittances of $3.2 billion in July 2025, rupee stability, and expectations of increased exports due to the India-US tariff dispute. He stated, “Stocks closed at a new all-time high amid strong earnings and positive speculation over US investment details under the Pak-US trade deal.” Additionally, mutual fund investments and macroeconomic improvements supported the rally.
The government has made progress in power sector reforms, reducing circular debt by Rs780 billion to Rs1.6 trillion. The National Assembly was informed that total circular debt stood at Rs2.47 trillion as of May 2025, with Rs1,275 billion being managed through a low-interest loan. Measures to prevent future debt accumulation include renegotiating IPP tariffs, privatizing distribution companies, and improving energy efficiency.
According to Gallup Pakistan’s Q2 2025 survey, business optimism has reached its highest level in nearly four years, with 46% of respondents rating the current government’s economic management better than the previous administration. With US-Pak trade talks in the final stages and improved tariff concessions expected, analysts remain hopeful for sustained market growth.
