KSE-100 Rises After SBP Holds Interest Rate Steady

Pakistan Stock Market – (Web Desk) – Pakistan’s stock market pushed higher on Tuesday as the KSE-100 rises after SBP holds interest rate unchanged at 11.5%, boosting investor confidence across the board.

The benchmark KSE-100 Index touched an intraday high of 180,499 points, gaining over 3,460 points during the session. However, it later settled at a more modest gain as trading stabilized.

Market analyst Ahsan Mehanti of Arif Habib Commodities said stocks turned bullish following the State Bank’s rate decision, supported by low inflation expectations and progress on the US-Iran peace deal.

Falling global crude oil prices also helped lift sentiment at the Pakistan Stock Exchange. Brent crude dropped to $82.92 per barrel, while US WTI crude traded near $80.66, easing pressure on Pakistan’s import bill.

The SBP noted that headline inflation climbed from 7.3% in March to 11.7% in May, driven by higher energy costs linked to the Middle East conflict. Core inflation also edged up to 8.7% in May.

Despite this, the central bank projected inflation to gradually ease after a few months, giving markets room to breathe.

On the global front, the US-Iran interim peace deal raised hopes of reopening the Strait of Hormuz, which had disrupted energy supplies for over three months. A formal signing is expected in Switzerland on Friday.

The SBP Governor also confirmed that Pakistan’s foreign exchange reserves are on track to reach $18 billion, with remittances expected to cross $41 billion for FY26.

Meanwhile, the Pakistan Stock Brokers Association praised Budget FY27 as investor-friendly, welcoming the government’s decision to keep the existing tax regime for the stock market unchanged.