The Pakistan Stock Exchange (PSX) maintained its bullish momentum during the outgoing week as the benchmark KSE-100 index surged 4,220 points (+2.67% week-on-week – WoW) to close at a historic high of 162,257.
Investor sentiment remained upbeat, fueled by the landmark Rs1.225 trillion circular debt resolution deal, improving external account indicators, and renewed optimism following the prime minister’s meeting with US President Donald Trump at the White House. Sector-specific gains were led by banks, cement, fertiliser, and power, while expectations of upcoming debt-related disbursements and progress on the IMF’s second review further supported market confidence.
On a day-on-day basis, the PSX kicked off the rollover week on a slightly weaker footing, where the KSE-100 shed 483 points (-0.31%) to close at 157,555. The index ended Tuesday on a positive note, gaining 390 points (+0.25%) to 157,945, despite rollover-driven volatility.
On Wednesday, the bourse spent another session consolidating gains within the 158-159k band, ultimately closing at 158,237, up 292 points (+0.18%).
The market staged a powerful rally on Thursday, closing above the psychological 159k mark at 159,208, higher by 1,043 points (+0.66%). Bulls stormed the PSX on the final trading day of the week as the KSE-100 shattered the 160k barrier and closed at a historic high of 162,257, registering a massive gain of 2,977 points (+1.87%).
Arif Habib Limited (AHL), in its weekly review, wrote that the KSE-100 index closed the week at 162,257, up 4,220 points (+2.67% WoW). Among positive news reports, the prime minister of Pakistan and the US President met at the White House on September 25, with bilateral and international issues on the agenda. The meeting took place weeks after a high-level US delegation, including representatives from renowned global companies in mining and infrastructure sectors, visited Pakistan. Memoranda of understanding (MoUs) focusing on the development and processing of critical minerals, including rare earth elements, were signed between the two governments, according to media reports, AHL said.
The power-sector circular debt resolution agreement signed on September 24 paved the way for a Rs1.225 trillion loan from banks at Kibor minus 0.9% and was poised to improve the energy landscape, it observed.
The power-sector circular debt stood at Rs1.6 trillion as of July 2025 vs Rs2.3 trillion in July 2024. During Jul’25 FYTD, it rose Rs47 billion compared to a reduction of Rs42 billion in the same period of last year. Pakistan’s forex reserves rose to $19.79 billion (up $58 million WoW), including the State Bank’s reserves of $14.38 billion (up $22 million).
In Aug’25, crude imports declined 16.3% year-on-year (YoY), while petroleum product imports increased 3.8%. In terms of value, crude imports declined sharply, driven by lower oil prices and reduced import volumes.
Pakistan’s oil production increased 2.7% WoW, arriving at 64,313 barrels per day (bpd). Production from Pasakhi, Maramzai, and Sharf increased during the week. Meanwhile, output from Kunnar Pasakhi Deep and Dhok Sultan decreased. Gas production edged up 2.8% WoW, settling at 2,812 million cubic feet per day (mmcfd) on the back of higher production by Sui, Makori East, and Kandhkot. Production from Qadirpur, Mari, and Kunnar Pasakhi Deep registered a decline. The Pakistani rupee appreciated marginally by 0.03% WoW, closing at 281.37 against the US dollar, AHL said.
Overall sentiment remains positive in the market, bolstered by the circular debt signing ceremony on Wednesday, a long-awaited event. The market could see further positivity in the coming weeks when circular debt payments are disbursed, the brokerage house added.
Syed Danyal Hussain of JS Global noted that the KSE-100 index continued its bullish momentum, surpassing the year-end target of 160,000 points and closing the week at 162,257 points (+2.7% WoW). The major contributing sectors to the surge were banking, cement, fertiliser, and power, adding 43%, 17%, 11%, and 7%, respectively.
During the week, he said, positive sentiment continued to dominate market activity, including the signing of a Rs1.225 trillion financing deal aimed at addressing the power sector’s circular debt pile-up.
Also, the PM met Donald Trump, boosting investor sentiment. Additionally, Pakistan dispatched a delegation to Saudi Arabia to discuss the economic roadmap, likely to be finalised in the coming months. In other news, the IMF commenced the second review of the ongoing $7 billion Extended Fund Facility, with technical talks currently underway. Pakistan secured $1.38 billion in external loans during 2MFY26, against the target of $19.9 billion for FY26. Apart from that, the government aims to raise $750 million in the next few weeks through launching Panda bonds and securing commercial financing with the help of commercial banks, the JS analyst added.
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