Islamabad, June 28, 2025: As Fiscal Year 2025 draws to a close, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index has emerged as the clear winner, delivering an impressive 55.58% return for investors. This stellar performance significantly outpaced other major asset classes in Pakistan, marking a strong comeback for the equity market.
The KSE-100’s remarkable rally overshadowed returns from traditional safe havens and money market instruments. Gold, often seen as a hedge against inflation, posted a respectable 47.56% return. However, it couldn’t match the stock market’s surge.
Similarly, Treasury Bills (T-Bills) offered a modest 12.68% return, while the US Dollar (USD/PKR) saw a minimal appreciation of just 1.91% against the Pakistani Rupee. This highlights the equity market’s superior ability to generate wealth in the outgoing fiscal year.
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This powerful performance of the KSE-100 Index has been fueled by a combination of key factors. Aggressive monetary easing by the State Bank of Pakistan, which saw significant cuts in the interest rate, made borrowing cheaper and directed funds back into the equity market.
Furthermore, renewed confidence stemming from International Monetary Fund (IMF) deals has played a crucial role, bringing stability and a positive outlook for Pakistan’s economy.
The market has also witnessed record participation, with high trading volumes and increased investor interest, indicating growing trust and engagement from both institutional and individual investors. This collective enthusiasm has pushed the PSX “back in action,” transforming it into a lucrative avenue for investment.
The KSE-100’s strong showing in FY25 positions it among the top-performing global stock markets, attracting attention from both local and international observers. This robust growth underscores the potential of Pakistan’s equity market and signals a promising period ahead for investors.
