Islamabad, June 29, 2025: The Pakistan Stock Exchange (PSX) has outshined global markets, emerging as the world’s best-performing stock market in US dollar terms over the past two fiscal years. Backed by data from Bloomberg, this extraordinary rise marks a 200% surge from FY24 to FY25, driven by renewed economic stability and investor confidence.
After Pakistan secured IMF support in June 2023, the market rebounded sharply, shaking off the threat of a balance of payments crisis. In FY25 alone, the PSX delivered a stellar 55% return, placing Pakistan among the top ten global stock markets for the year.
The rally is underpinned by macroeconomic reforms, consistent policy direction, and restored faith among both local and foreign investors. Despite this success, the PSX remains significantly undervalued, with a total market capitalization of just $53 billion—roughly 13% of Pakistan’s GDP—and a price-to-earnings ratio below six.
According to Topline Securities CEO Mohammed Sohail, these numbers highlight a vast gap between performance and value, pointing to untapped potential in Pakistan’s equity market.
As the market continues to gain momentum, experts believe that with continued economic discipline and investor-friendly reforms, Pakistan’s stock market could draw even greater attention from global investors.
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