Pakistan Equity Surge — Pakistan’s benchmark KSE-100 Index achieved the highest return globally in U.S. dollar terms over the past two fiscal years, according to Bloomberg (Geo.tv report, August 15, 2025). This exceptional performance places Pakistan equity at the top of global equity rankings and ahead of regional players like India and China.
In the recently concluded fiscal year (FY25), the KSE-100 delivered a robust 55.5% return in USD, along with a 58.6% gain in PKR terms, climbing from 78,445 to 124,379 points (Daily Times) Geo.tvDaily Times.
Arif Habib Limited (AHL) attributed this equity surge to aggressive monetary easing, improved market liquidity, and value unlocking across key sectors like banking, energy, and construction. The rally was further strengthened by investor optimism linked to IMF-backed reforms and fiscal stabilization Daily TimesBusiness Recorder.
Why Pakistan Equity Surge Matters
- Global Leadership: Pakistan’s stock market outperformed developed and emerging markets alike, including the U.S., Germany, India, and Japan—reflecting a rare moment of investment superiority Daily TimesBusiness Recorder.
- Underlying Drivers: The surge is driven by sharp interest rate cuts by the State Bank of Pakistan, growing liquidity, and strong fundamentals across major economic sectors Daily TimesBusiness Recorder.
- Broader Momentum: This performance builds on a trend of strong returns in 2024, when the market was among the top performers globally, aided by investor confidence and macroeconomic gains The Express Tribune+1Wikipedia.
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