PSX Record Break 2025: KSE-100 Hits 175,000 Points | 2026 Forecast

The Pakistan Stock Exchange (PSX) concluded the year 2025 on an extraordinary note, shattering all previous records as the benchmark KSE-100 index crossed the prestigious psychological threshold of 175,000 points for the first time in history.

Market Performance Breakdown

During the final trading session of the year, the market witnessed intense buying interest, propelling the index to an intraday high of 175,232 points. However, the closing hours saw slight profit-taking by investors, leading to a minor correction of 418 points. The market ultimately settled at 174,054 points, maintaining a strong position compared to the previous day’s close of 174,472 points.

Key 2025 Statistics at a Glance:

• Overall Index Growth: 52% increase in the KSE-100 index.
• Market Capitalisation: Surged by 39%, reaching a staggering Rs 19.7 trillion.
• Investor Base: Significant growth in retail participation, with the investor base expanding by over 37% in the last 18 months.

The Drivers of Growth

Economic analysts attribute this “bull run” to a combination of disciplined fiscal policies and improved macroeconomic indicators. Key factors include:

1. Reduced Inflation: Headline inflation dropped significantly, touching a multi-year low of 5.8% in December 2025.
2. Interest Rate Cuts: The State Bank of Pakistan (SBP) eased the policy rate to 10.5%, providing much-needed liquidity to the corporate sector.
3. GDP Recovery: Recent data revealed a 3.71% GDP growth in the first quarter of FY26, signalling a robust industrial rebound.

Expert Outlook: 200,000 Points in 2026?

Financial experts remain highly optimistic about the future. According to leading research firms, if the current trajectory of economic stability and investor confidence continues, the KSE-100 index is well-positioned to challenge the 200,000-point milestone by the end of 2026.

As the curtains fall on a record-breaking 2025, the Pakistan Stock Exchange stands as a testament to the country’s resilient economic turnaround, offering a promising landscape for both domestic and foreign institutional investors.