PSX reaches its highest point ever amid geopolitical and economic optimism.

Pakistan – (Special Correspondent / Web Desk)  – Driven by robust liquidity inflows, an improved geopolitical outlook, and indications of domestic macroeconomic stability, the KSE-100 Index hit a new all-time high of 161,688.01 points in intraday trading on Friday, continuing the buying rally at the Pakistan Stock Exchange (PSX).

The benchmark KSE-100 Index increased 2401.97 points, or 1.51%, from the previous close of 159,280.09 to reach an all-time high of 161,688.01 points during intraday trading.

Strong cash inflows supported by an improved geopolitical outlook and indications of domestic macroeconomic stability were cited by analysts as the reason for the spike.

Muhammad Saad Ali, Head of Research at Lucky Investment, highlighted the persistence of current trends and credited market optimism for the economic prospects for the PSX’s performance.

“All economic indicators are moving in the right directions, the IMF programme is on track and side by side we are also in a good place with regards to our foreign policy and our relations with countries which are our bilateral lenders, such as China, Saudi Arabia and the US.”

“So both of these [factors] have been driving market optimism and the investors’ sentiment is at its highest level that we’ve seen for many years, he added.

The 160,000-mark was something that was expected to happen by the end of this year, but has already happened, the expert noted.

AAH Soomro, an independent investment and economic analyst, added: “The economy is moving in the right direction, which is supporting investor confidence.”

However, he also advised caution, highlighting the need to evaluate the sharp upward trend. “While the rally reflects positive sentiment, unidirectional market movements often call for healthy corrections.”

Pakistan and the International Monetary Fund (IMF) commenced technical-level talks on Thursday, during which the Fund raised concerns over a substantial revenue shortfall against the Federal Board of Revenue’s (FBR) twice-revised downward target for the last fiscal year.

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Simultaneously, Islamabad secured $1.377 billion in external loans during July and August of the current fiscal year (FY2025-26), against a full-year projection of $19.9 billion. Bilateral inflows totalled $232 million, including $200 million from Saudi Arabia under an oil facility.

Multilateral creditors, including the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and Islamic Development Bank, disbursed $780 million, with the World Bank as the lead contributor, The News reported.

During the talks, the IMF questioned why the FBR faced a shortfall of Rs1.2 trillion against its original target of Rs12.97 trillion for FY2024-25, despite the imposition of Rs1.3 trillion in additional taxes. The FBR ultimately collected Rs11.74 trillion after two downward revisions. Officials attributed the gap to unrealised recoveries of Rs250 billion from pending court cases.