The Pakistan Stock Exchange (PSX) mobilized Rs. 9.74 billion ($34.8 million) between July 2024 and March 2025, driven by new listings and debt issuances, as the market continued its strong performance amid economic reforms and foreign investor activity.
According to the Pakistan Economic Survey FY2024-25, Rs. 8.99 billion came from new listings, while Rs. 750 million was raised through debt instruments. During the same period, foreign investors offloaded $242 million worth of securities, which domestic investors fully absorbed.
Record Market Performance
The benchmark KSE-100 index surged 50.2%, making the PSX one of the best-performing equity markets globally. Analysts attributed the rally to a stabilizing macroeconomic environment, the IMF’s Extended Fund Facility program, and strong domestic investor confidence.
Key sectors such as pharmaceuticals, jute, and transport led gains, while fertilizers and energy showed strong potential. Despite the record rally, the PSX remains undervalued compared to regional peers, trading at a forward P/E ratio of 6.0x—about 50% below its historical average.
Government Debt and Reforms
The government raised Rs. 2.3 trillion through 19 auctions of government debt securities, including Sukuk bonds, traded on the PSX.
The Securities and Exchange Commission of Pakistan (SECP) introduced several reforms, including:
• New portfolio management rules for brokers.
• Simplified listing requirements for companies.
• ESG Sustain Portal, promoting sustainable business practices.
• A Strategic Action Plan to transition toward an interest-free economy by 2028.
With improving economic indicators and regulatory support, analysts expect the bullish trend to continue in the coming months.