The Pakistan Stock Exchange (PSX) started the new year on a positive note, with the benchmark KSE-100 Index rising by more than 1,700 points on Thursday, driven by a mix of positive economic indicators and investor confidence.Â
At 11:30 AM, the index was hovering at 175,785.83, marking an increase of 1731.51 points or 0.99% from the previous close of 174,054.32 points.Â
Strong buying interest was observed across several key sectors, including commercial banks, oil and gas exploration companies, and oil marketing companies (OMCs). Major index-heavy stocks such as OGDC, POL, PPL, PSO, MCB, and UBL were in the green during the session.
Analysts attributed the market’s positive momentum to several factors, including a recovery in industrial output and ongoing structural reforms aimed at improving Pakistan’s economic stability.
According to the Ministry of Finance’s Monthly Economic Outlook for December, Pakistan’s economy is expected to maintain its positive trajectory in the near term. The report highlighted that large-scale manufacturing (LSM) is on track to continue its recovery, bolstered by reforms targeting industrial competitiveness. Key sectors such as textiles, automobiles, cement, and food processing were identified as major contributors to this growth.
This optimistic outlook follows data released by the Pakistan Bureau of Statistics, which showed a 3.71% economic growth in the first quarter of FY2025-26, largely driven by stronger industrial production. However, opposition leaders and some economists have raised concerns over the realism of the official growth figures, questioning their accuracy.
On inflation, the finance ministry projected that consumer prices would stay within the range of 5.5% to 6.5% in December, primarily due to base effects. Inflation stood at 6.1% year-on-year in November 2025, exceeding the ministry’s earlier projections.
The positive outlook, alongside the fiscal discipline, governance reforms, and ongoing digitalisation efforts, has bolstered investor sentiment and supported the PSX’s strong performance to start the year.
Meanwhile, the Federal Board of Revenue (FBR) reported a provisional collection of Rs 6,154 billion for the first six months of the fiscal year 2025-26, falling short of the target of Rs 6,490 billion by Rs 336 billion. The shortfall in revenue collection, particularly in December 2025, may prompt the government to activate contingency measures, as agreed with the International Monetary Fund (IMF).
The PSX closed lower on the final trading day of the year, following profit-taking activity. The KSE-100 Index ended 418.45 points lower, settling at 174,054.32 points.
