The Pakistan Stock Exchange (PSX) surged to an all-time high on Tuesday, crossing the 149,000-point mark for the first time in history. The bullish run reflects renewed investor confidence and positive momentum in the market.
KSE-100 Index sets new benchmark
The benchmark KSE-100 Index rose by 1,171 points, closing at 149,367 points. Earlier in the session, the index had gained 595 points to reach 148,791 points, setting the tone for a strong trading day.
Investor confidence drives rally
Market analysts attributed the rally to expectations of stable economic policies, easing inflation, and prospects of interest rate cuts. The surge comes amid optimism in both local and foreign investor sentiment, boosting overall market activity.
Meanwhile, inflation in Pakistan is projected to settle between 3.75% and 4.25% in August 2025, according to a report by Topline Securities, a private economic think tank.
The monthly increase is expected to be modest at 0.3%, reflecting signs of stability compared to last year’s double-digit price hikes.
Inflation trends compared to last year
The report highlights that inflation stood at 4.07% in July 2025, while in August last year it was 9.63%. Looking ahead, Topline Securities expects the annual inflation rate to range between 6% and 7% by the end of the current financial year, broadly aligning with the State Bank of Pakistan’s forecast of 5% to 7%.
Scope for interest rate cuts
With price pressures easing, the think tank noted that the central bank has room to cut the policy rate by 50 to 100 basis points in the coming months. It further projected that the interest rate could decline to 10% by December 2025, potentially lowering borrowing costs for businesses and households.
What will get costlier or cheaper
Topline Securities also forecast changes in essential commodity prices. The report warned that transport, diesel, tomatoes, onions, and eggs are likely to become more expensive this month. On the other hand, relief may come for consumers as fresh fruits, sugar, and chicken are expected to see price declines.
