PSX Rally Gains Momentum Amid Economic Optimism and Record Remittances

The Pakistan Stock Exchange (PSX) opened the week on a bullish note, with the benchmark KSE-100 index surging by over 900 points during intra-day trading on Monday, reflecting rising investor confidence fueled by positive economic indicators.

By mid-session, the index hovered at 118,295 points, building on its upward momentum from the previous week. The index had closed at 117,315 points on Friday, gaining 414 points in a single session.

Consistent Gains Reflect Market Confidence

The PSX showed consistent strength throughout the previous week, with Thursday’s early trade seeing the index touch 117,013 points, before settling at 116,901 points*, up by 801 points. While a minor dip was recorded mid-week, strong performance resumed shortly after.

Investors’ optimism has been largely driven by a combination of domestic economic developments and easing global market pressures.

Economic Indicators Fuel Positive Sentiment

A key driver behind the market’s positive trend has been record-high remittances. Speaking at a PSX event, State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed that overseas Pakistanis sent $28.07 billion during the current fiscal year.

He noted that remittances for March 2025 alone hit $4.1 billion, marking a historic high and reflecting a 40% year-on-year increase* in February.

According to SBP data, remittance inflows were led by:
– Saudi Arabia: $987 million
– UAE: $842 million
– UK: $684 million
– US: $419 million

Prime Minister *Shehbaz Sharif* also lauded the development, saying the milestone reflected overseas Pakistanis’ confidence in the government’s economic direction.

Global Confidence: Fitch Upgrades Pakistan’s Credit Rating

Further boosting market sentiment was a recent credit rating upgrade by Fitch Ratings, which revised Pakistan’s foreign currency rating from ‘CCC+’ to ‘B-’. The upgrade was attributed to progress in budget deficit reduction and structural reform efforts under the International Monetary Fund (IMF)* programme.

Fitch also cited increased funding availability and improved fiscal discipline, reinforcing foreign investors’ confidence in the country’s macroeconomic outlook.

Global Reprieve Adds to Recovery

On the global front, a temporary halt in tariff escalation by the United States helped ease international market tensions. US President Donald Trump’s 90-day tariff reprieve* contributed to a global equity rebound, including in Pakistan.

Outlook Remains Cautiously Optimistic

Despite a minor correction mid-week—where the PSX dropped by 755 points* to close at 116,020.11 on Wednesday—investor sentiment remains largely bullish as Pakistan’s economic indicators trend positively.

With the PSX now edging closer to the 119,000 mark, the ongoing rally highlights growing market confidence amid signs of sustained economic recovery.