Pakistan Stock Exchange Sees 50% Growth in FY25

The Pakistan Stock Exchange (PSX) has experienced significant growth, with the KSE-100 index increasing by 50.2% from 78,445 to 117,807 points, driven by a stable macroeconomic environment, strong corporate earnings, and a declining policy rate.

The market capitalization of the PSX increased by 38.5% to Rs 14,374 billion, while the number of listed companies rose to 527. The National Savings Schemes recorded an inflow of Rs 171.3 billion, and 26,104 new companies were incorporated, capitalizing Rs 66.6 billion. The Pakistan Mercantile Exchange (PMEX) traded 5.88 million commodity futures contracts valued at Rs 6.54 trillion, a 60% increase from the previous year.

The KSE-100 Index grew substantially due to a stable macroeconomic environment and improved market sentiments. The debt market also remained steady, with a net inflow recorded after four years under the National Saving Scheme. The average daily volume surged to 828 million shares compared to 621 million shares witnessed during FY 2024. Foreign investors offloaded $242m worth of securities, which were absorbed by domestic investors.

The PSX's remarkable performance has made it one of the world's top-performing equity markets, with a 50.2% growth in FY25. The market's growth can be attributed to robust corporate earnings, declining interest rates, and a successful IMF Extended Fund Facility programme review. The PSX's market capitalization recorded Rs 10,375 billion ($ 37.3 billion) on 30 June 2024 and closed at Rs 14,374 billion ($ 51.30 billion) on 31 March 2025, reflecting an increase of 38.5 percent.