Islamabad 12 August: The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Tuesday, fuelled by robust corporate earnings, sustained institutional buying, and optimism over finalising US investment commitments under the recently signed Pak–US trade agreement.
The benchmark KSE-100 Index climbed 1,047.14 points, or 0.71%, to an intraday peak of 147,976.98 points from the previous close of 146,929.84. The day’s low was recorded at 147,309.18 points, still up 379.34 points, or 0.26%.
Market momentum was supported by July 2025’s record $3.2 billion in remittances, rupee stability, and expectations of an export boost amid the ongoing India–US tariff dispute. “Mutual fund inflows, strong results, and improving US ties are carrying the market forward, with added optimism from possible circular debt resolution,” noted independent analyst AAH Soomro.
Talks between Islamabad and Washington are in the final stages, focusing on investment flows and enhanced tariff concessions for select Pakistani exports, following last month’s 19% tariff cut. State Finance Minister Bilal Azhar Kayani confirmed the progress, Bloomberg reported.
READ MORE: PSX Soars Up, SE-100 Gains 992 Points
On the domestic front, the government has reduced power sector circular debt by Rs780 billion to Rs1.6 trillion through reforms, tariff renegotiations, planned privatisation of four distribution companies, and efficiency improvements. The National Assembly was informed that Rs1,275 billion of the debt will be restructured over six years at a rate of 3-month KIBOR minus 0.9%.
Business confidence has reached its highest point in nearly four years, according to Gallup Pakistan’s Q2 2025 survey, with 46% of respondents rating the PML-N government’s economic management as better than its predecessor’s.
On Monday, the KSE-100 had already surged 1,547.05 points, or 1.06%, to 146,929.84 points.
