PSX Among World’s Top Performers in 2025, Then War Came

Pakistan’s equity market emerged as one of the strongest-performing stock markets globally in 2025, with the benchmark KSE-100 Index surging 51.2 percent during the year, the State Bank of Pakistan (SBP) said in its Financial Stability Review 2025.

The index closed at a record 174,054 points, supported by improving macroeconomic stability, declining inflation, and interest rate cuts that boosted investor sentiment.

The rally lifted the market capitalisation of the top 100 listed companies by 38.4 percent, reaching Rs. 16,639 billion by year-end.

Despite continued net selling by foreign investors amid profit-taking, domestic participants (particularly mutual funds and individual investors) emerged as the largest net buyers, absorbing selling pressure and sustaining market momentum.

SBP noted that improved economic fundamentals and easing financial conditions played a central role in driving the historic market performance.