Stability, liquidity, good corporate results, upgrading of Pakistan\u2019s ratings contributing to new highs, says expert
\n Islamabad
\nThe equity market rose to a new record high on Monday, with investors encouraged by improving corporate earnings, favourable macroeconomic indicators, and expectations of further progress on structural reforms.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at 148,196.42 points, up 1,704.79 points, or 1.16%, from the previous close of 146,491.63.
\nDuring the session, the index climbed to an intraday high of 148,395.71, gaining 1,904.08 points, or 1.3%, registered a low of 146,403.64, reflecting a drop of 87.99 points, or 0.06%.
\n\u201cStability, liquidity, good corporate results, upgrading of Pakistan\u2019s ratings and expectations of tame inflation numbers are all contributing towards market making new highs,\u201d said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
\nThe stock market is expected to remain buoyant in the coming week, supported by optimism over corporate earnings and anticipated progress on circular debt reforms. Sentiment is also expected to stay upbeat with corporate results season in full swing and further clarity awaited on the government\u2019s industrial policy measures, particularly the phasing out of the super tax.
\nIn the energy sector, the power division is set to present its final proposal on debt re-profiling with Chinese independent power producers (IPPs), whose outstanding dues stand at Rs475 billion.
\nSupporting liquidity in the financial system, deposits at commercial banks reached Rs33.756 trillion as of August 1, 2025, up 12.51% from a year earlier. The rise was driven by stronger remittance inflows and a shift towards formal savings amid easing inflation and reduced cash hoarding, according to central bank data.
\nRemittances from overseas Pakistanis increased by 7.4% year-on-year to $3.2 billion in July, the highest ever inflow recorded for that month, although they fell 6.0% compared to June.
\nMeanwhile, Pakistan\u2019s foreign exchange reserves held by the State Bank of Pakistan (SBP) edged up by $11 million to $14.243 billion as of August 8. The country\u2019s total liquid reserves rose by just $1 million to $19.497 billion, with commercial banks\u2019 reserves slipping by $10 million to $5.254 billion. The slight improvement followed Moody\u2019s upgrade of Pakistan\u2019s credit rating by one notch, from \u2018Caa2\u2019 to \u2018Caa1\u2019, with a \u2018stable\u2019 outlook. The Moody\u2019s revision, alongside earlier upgrades by Fitch and S&P, is expected to enhance Pakistan\u2019s ability to secure external financing. The government maintains that the economy is on a recovery path, supported by a $7 billion IMF bailout.
\nOn Friday, the KSE-100 Index had declined by 37.67 points, or 0.03%, to close at 146,491.63, after trading between a high of 147,534.41 and a low of 146,269.59. Over the course of the outgoing week, the index posted a gain of 1,109 points, or 0.76% week-on-week.<\/p>\n","protected":false},"excerpt":{"rendered":"
Stability, liquidity, good corporate results, upgrading of Pakistan\u2019s ratings contributing to new highs, says expert Islamabad The equity market rose to a new record high on Monday, with investors encouraged by improving corporate earnings, favourable macroeconomic indicators, and expectations of further progress on structural reforms. The Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at […]<\/p>\n","protected":false},"author":2,"featured_media":486907,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-497565","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n