The Economic Survey of Pakistan 2025-26 shows that the KSE-100 index witnessed a significant increase from 125,627 to 148,743 points between July to March FY26, and recorded its highest point ever reached of 189,167 on January 2
KARACHI: The stock market of Pakistan gave one of the best performances in Asia during the first nine months of FY26. The market capitalization of PSX was at $59.23 billion by March 31, 2026, which is an increase from $53 billion by June 30, 2025, while the KSE-100 index gained 18.4%, based on the findings of the Pakistan Economic Survey 2025-26 published on Thursday.
Factors behind PSX market cap reaching an all-time peak
PSX market cap growth to 2026 hinges on the convergence of four key elements outlined by the Economic Survey. A continuously favourable macroeconomic environment saw the reduction in the risk premium on stocks listed in Pakistan. The completion of review operations by the IMF’s Extended Fund Facility Programme improved Pakistan’s image and facilitated capital flows from bilateral and multilateral sources. In addition, falling inflation levels helped the State Bank to relax monetary policy, lowering the cost of holding equities. As a result, a new phase of investors’ confidence in reforms led to a record high of the KSE-100 index at 189,167 on January 23, 2026.
The level of activity for trading showed the same amount of excitement – with an increase of 1,206 million shares traded in July-March, FY26 from 834 million shares traded during the entire FY25. As on March 31, 2026, there were 536 listed companies with total listed capital at Rs1,626 billion and market capitalization at Rs16,534 billion.
Momentum that was lost the problems that occurred from February onwards
The story of the PSX market capitalization does not stop with the highs seen in January. From early February 2026, the market experienced a loss of momentum due to the simultaneous presence of various risks. Speculations about tensions with Afghanistan, increasing pressures geographically in the region, increasing oil prices around the world, foreign sell-offs, local profit-taking, and the traditional low season of Ramadan all contributed to weakening the momentum. This resulted in a decline in the value of the KSE-100 from its record high of 189,167 to 148,743 by the end of the nine months.
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KSE-100 performance vis-a-vis other Asian stock indices
In the broader Asian market environment within which PSX 2026 will operate, Pakistan stood tall when compared with most of its peer group nations. KOSPI from South Korea was the best-performing Asian stock index with a staggering 64.5% growth in value. The SET index from Thailand was up 32.9%, the VN30 from Vietnam went up by 23.8%, and the FTSE Straits Times index of Singapore appreciated by 23.2%. KSE-100’s 18.4% made Pakistan stand fifth in the ranking list among other Asian stock indices after the MSCI EM index (13.8%).
Indo-Philippines performance lagging
This wasn’t true in all cases. The BSE Sensex 30 index and the PSEi Composite index from India and the Philippines respectively had a decline in their values from July 2025 to March 2026. This shows that the increases in value in Pakistan’s PSX market took place despite the differences in other Asian markets.
Significance of the $59.23 billion PSX market cap figure
A figure such as $59.23 billion for the PSX market capitalisation indicates far more than a numerical figure – it demonstrates the cumulative impact of stabilising macroeconomics, the credibility of the IMF programme and rebuilding investor confidence that the economic policymakers of Pakistan have been striving to achieve through several rounds of reforms. While the decline in February reveals that success was vulnerable and geopolitical risk-conscious, the nine-month run from $53 billion to $59.23 billion, with the intra-day peak being 189,167, proves that Pakistan’s stock market is finally receiving regional attention.
