“Ik vari fer history made!” — the Pakistan Stock Exchange (PSX) just shattered another ceiling as the benchmark KSE-100 Index crossed 172,000 points for the first time ever. In 2025 alone, the index has delivered over 47% year-to-date returns, building on a blistering 60% gain in the previous 12 months. For perspective, silver is up 90% over a similar recent period, while GDX (the gold miners ETF) has roughly doubled that at around 130–180%.
Finance textbooks warn: “Past performance is no guarantee of future results.” But as Mark Twain observed, “History doesn’t repeat itself, but it often rhymes.” And right now, Pakistan’s stock market is rhyming louder than ever.
This isn’t just another bull run. It’s a multi-year resurrection story that has repeatedly placed the PSX among the world’s top-performing markets — often when global investors weren’t even looking.
The Numbers That Demand Attention
Let’s start with the hard data.
- FY24 (ended June 2024): KSE-100 closed at a record 78,000 points, delivering 89% YoY returns in PKR terms (a 21-year high) and an astonishing 94% in dollar terms — crowning Pakistan the world’s best-performing market that year.
- Market capitalization hit an all-time closing high of PKR 10.4 trillion.
- The Pakistani rupee appreciated by PKR 7.6, closing FY24 at 278.34 (+3% vs USD).
- Foreign portfolio inflow (FIPI) reached USD 139 million — the highest since FY14.
- IPO activity surged to five listings, up from just one the prior year.
By mid-2024, Pakistan was leading Asian equity markets:
- Pakistan: +27% (until June)
- Sri Lanka: +22%
- Taiwan: +20%
- India: +8%
And the momentum hasn’t stopped. The KSE-100’s climb to 172,000+ in December 2025 represents one of the strongest sustained rallies in the exchange’s history.
A Timeline of Resilience and Records
The PSX has a habit of outperforming exactly when sceptics are most vocal. Here are some of the standout moments:
- February 2024: Top 100 listed companies posted record combined net profits of over Rs 1.5 trillion for CY2023 — a 51% surge YoY.
- March 2024: KSE-100 hit 66,547 points, emerging as one of the world’s best-performing markets over the prior year.
- April 2024: Crossed 72,500 points, becoming Asia’s top-performing stock market.
- September 2020: Ranked No. 1 in Asia and No. 4 globally.
- 2020 overall: Fourth-best stock market worldwide and the best in Asia despite the COVID-19 pandemic.
- August 2020: Crossed 40,000 in seven consecutive positive sessions.
- May 2021: Recorded the highest single-day trading volume ever at 2.21 billion shares.
- November 2019: Up 14.9% in a single month — the highest monthly return since May 2013 — and declared the world’s best-performing exchange over the prior three months.
- July 2023: Bloomberg named PSX the world’s best-performing market for the week; it ranked third-best for the entire month.
- August 2022: Best-performing market globally for the first half of the month; PKR was simultaneously the world’s best-performing currency.
- October 2024: A dramatic single-day rebound of 7,000 points following political developments in Islamabad.
Yet there were darker chapters too. After years of strong performance between 2010–2017, the market suffered sharp declines during periods of political instability. In 2022, it swung from world-beater to third-worst in Asia within months. Critics pointed to policy uncertainty and external pressures. Recovery only regained momentum when stability returned.
Why This Rally Runs Deeper Than Headlines
Surface-level explanations — IMF talks, a stable rupee, attractive valuations — are valid, but incomplete.
- Macro stabilisation bearing fruit: The FY24 budget was explicitly designed to secure IMF support. Combined with currency stability, it restored investor confidence.
- Corporate earnings explosion: Record profits in 2023–2024 signal genuine fundamental strength, not just speculation.
- Foreign inflows returning: Highest FIPI in a decade shows global funds are noticing.
- Undervaluation catch-up: After years of underperformance relative to regional peers, the market was trading at compelling multiples.
- Structural tailwinds: Rising IPO activity, higher trading volumes, and improved liquidity all point to a maturing market.
Most importantly, the PSX has repeatedly proven its resilience. It delivered world-class returns during global crises (COVID-19), regional underperformance, and domestic political turbulence. When global markets were weak or modest, Pakistan often stood out.
Silver at 90%, Gold Miners at ~180%, PSX at 60%+ — Which Would You Pick?
The question isn’t academic. All three have crushed broader equity benchmarks over recent periods. Precious metals offer inflation protection and safe-haven appeal. Gold miners provide leveraged exposure to bullion prices.
But the PSX offers something neither can match: exposure to a frontier market undergoing a multi-year economic turnaround, backed by record corporate profits, improving macros, and historically cheap valuations.
History shows the PSX can deliver explosive returns precisely when sentiment is mixed — exactly the environment we have today.
Final Thought
The 47%+ rally in 2025 is impressive on its own. But placed in the broader context — from 78,000 in June 2024 to over 172,000 today, with repeated global outperformance across decades — it becomes something bigger: validation of Pakistan’s underlying economic potential.
Investors who ignored the headlines in 2020, 2023, and early 2024 were handsomely rewarded. Those paying attention now may be witnessing the early chapters of the next leg higher.
The rhyme is getting louder. Are you listening?
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is no guarantee of future results. Always conduct your own due diligence.
