The year 2025 proved to be a landmark period for the Pakistan Stock Exchange (PSX), as the market touched historic highs and delivered an impressive 52 percent return to investors.
Improved government policies, macroeconomic stability, and renewed investor confidence helped the stock market gain nearly 58,000 points during the year. The banking, oil & gas, and fertilizer sectors emerged as the top-performing segments..
Despite ongoing economic challenges, 2025 turned out to be one of the best years for the Pakistan Stock Exchange in terms of performance and investor participation. Not only did the market set new records, but there was also a significant increase in the number of account holders, reflecting growing public confidence in the equity market.
At the start of 2025, the KSE-100 Index stood at 117,008 points, and by the end of the year it had surpassed the 175,000 mark, registering an overall increase of nearly 58,000 points. In March 2025, the index crossed 120,000 points, followed by 125,000 points in June. Later in the year, the market achieved another milestone by crossing 150,000 points, and in September it reached 163,000 points for the first time in history.
Commenting on the market’s overall performance, PSX Director Ahmed Chinoy, in a conversation with BOL News, said that positive government policies played a key role in economic improvement, which translated into strong stock market performance. He noted that the KSE-100 Index crossing 175,000 points reflected strong restoration of confidence among both domestic and international investors..
Ahmed Chinoy added that although there were months when the market underperformed, the recent military success of Pakistan’s armed forces during tensions with India significantly enhanced Pakistan’s global standing and strengthened national defense. This development boosted investor confidence not only domestically but also internationally, as global markets acknowledged Pakistan’s performance and foreign companies expressed renewed trust..
He further highlighted that inflation had been at elevated levels last year, but a notable decline brought the policy rate down to around 10.5 percent, with expectations of further cuts. According to him, lower interest rates would further strengthen investor confidence and could help the stock market cross the 200,000-point level in 2026..
A sector-wise review of 2025 shows that commercial banks remained the top-performing sector, while strong momentum was also observed in oil & gas, fertilizers, cement, and energy sectors.
Providing market insights, Shahryar Butt, Portfolio Manager at Darson Securities, stated that the stock market’s upward and downward movements are a natural part of market behavior. However, he emphasized that in 2025, the KSE-100 Index showed exceptional growth due to strong fundamentals, enabling it to surpass 175,000 points despite periods of volatility.
According to Shahryar Butt, around 60,000 new investor accounts were opened in 2025, with November recording the highest number of new accounts. The total number of investor accounts has now reached approximately 450,000.
He stressed that while Pakistan remains under the IMF program, the government must continue and strengthen its reform agenda, as sustained reforms are critical for further economic and stock market growth.
He also pointed out that although interest rates remain relatively high, any further reduction would attract more investment into equities, enabling the market to set new records.
Reviewing key sectors, Butt noted that the oil and gas sector showed clear improvement, supported by development news related to the Reko Diq project, which delivered returns of over 30 percent. Government measures to address circular debt issues were also encouraging. OGDCL’s market capitalization approached USD 5 billion, highlighting sector strength.
The fertilizer sector also performed well, with FFC shares rising from PKR 314 to PKR 614 during the year. The cement sector showed mixed performance; however, stable cement sales and a sharp decline in global coal prices—from USD 130 to around USD 90 per ton—provided significant cost relief.
Shahryar Butt added that Lucky Cement expanded into the mobile industry, while several companies shifted toward solar energy to reduce costs.
The automobile sector also delivered strong results, driven by increased auto financing. Indus Motor shares rose from PKR 1,685 to PKR 2,430.
The banking sector remained outstanding, supported by strong car financing, increased deposits, and a strategic shift by banks toward lending to the government, resulting in higher savings and deposit growth.
Market data shows that the largest single-day decline in 2025 was 6,480 points in April, while the biggest rally recorded a gain of 5,892 points.
During the year, six new companies were listed through IPOs.
PSX market capitalization increased by PKR 5,566 billion, with total market size expanding from PKR 14,126 billion to PKR 19,682 billion. The number of companies valued at USD 1 billion or more rose to 18, compared to only three such companies in 2023.
In 2025, investor participation grew by 37 percent, while the market’s dollar value increased by 42 percent. Over the year, PSX’s dollar capitalization rose by USD 11 billion, from USD 55 billion to USD 66 billion.
On the final trading day of 2025, the KSE-100 Index touched a historic intraday high of 175,232 points. However, due to profit-taking, the market closed 418 points lower at 174,054 points, concluding one of the most remarkable years in Pakistan Stock Exchange history.
