Pakistan’s KSE-100 rises 1,166,013.40

Pakistan’s KSE-100 rises 1,166,013.40

Pakistan’s KSE-100 Index Surpasses 170,000 Points Amid Economic Reforms and Foreign Investment

The Karachi Stock Exchange (KSE) benchmark index, KSE-100, closed at 170,203 points on December 10, 2025, marking a 0.44% increase from the previous session and a new all-time high. Over the past month, the index has surged 7.81%, reflecting sustained investor confidence amid ongoing economic stabilization efforts in Pakistan. Year-to-date, the index has gained 53.60%, driven by fiscal reforms, including a $7 billion IMF bailout agreement finalized in July 2024.

The recent upward momentum follows a period of volatility earlier in 2025, when the central bank unexpectedly paused its interest rate easing cycle in March 2025, maintaining the key policy rate at 12%. Despite this, foreign institutional investors have increasingly allocated capital to Pakistani equities, buoyed by improved macroeconomic stability and a resolution to prolonged fiscal challenges.

Historically, the KSE-100 reached an intraday peak of 191,032.73 in May 2025 before consolidating. However, the index has remained above 165,000 points since late 2024, supported by tax policy clarifications and political stability. For instance, the government's decision to exempt capital gains tax in the 2024 budget alleviated concerns among domestic investors.

Technical indicators, however, suggest caution for short-term traders. The index currently carries a "Strong Sell" signal based on moving averages and momentum metrics. Analysts note that profit-taking and sector-specific pressures—such as refinery sector underperformance—could trigger near-term corrections.

Looking ahead, the KSE-100 is projected to trade at 165,349.75 by the end of Q1 2026, according to global macro models. Long-term fundamentals, including a young demographic and ongoing infrastructure projects, remain favorable for gradual growth. Investors are advised to monitor central bank policy and global commodity prices, which could influence market sentiment in the coming months.

(https://www.investing.com/indices/karachi-100): Reuters and Investing.com reports (2023–2025)
(https://tradingeconomics.com/pakistan/stock-market): Trading Economics, December 10, 2025