The stock market extended its winning streak on Tuesday, as investor sentiment remained buoyed by record-breaking remittances and growing optimism over the country’s external account outlook.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed by 385.47 points, or 0.33%, to close at 116,775.50. The index hit an intraday high of 117,362.22, up 972.19 points, or 0.84%, from the previous close of 116,390.03, while the session’s low was recorded at 116,645.68, still reflecting a gain of 255.65 points or 0.22%.
Explaining the reason behind the positive sentiment, Head of Research at Arif Habib Limited, Sana Tawfik, said: “The positive market today is mainly due to the update given yesterday on the economic front by the governor of the State Bank, in which remittance figures of $4.1 billion were shared."
"Then there was news that Fitch will most likely upgrade our rating. The governor also said yesterday that this month’s current account is in surplus and that the full year is also most likely to close in surplus," she added.
The rally followed upbeat comments from State Bank of Pakistan (SBP) Governor Jameel Ahmad, who on Monday expressed hope that the country’s foreign exchange reserves could reach $14 billion by June 2025.
Speaking to Geo News, he said that $2 billion in external payments were due over the next two and a half months, while $4–5 billion in expected inflows during the same period could lead to a net addition of $2–3 billion in reserves.
Governor Ahmad also projected that total remittances could hit an all-time high of $38 billion by the end of the current fiscal year (FY25), up from $30.25 billion in FY24. The central bank attributed this growth to increased use of formal channels, regulatory efforts to stabilise the exchange market, and rising trust in banking systems.
The SBP’s data released on Monday showed that overseas Pakistanis sent home $4.1 billion in March alone, the highest ever for a single month. This marked a 37% year-on-year rise and a 29.8% increase compared to February. Cumulative remittances for the first nine months of FY25 rose by 33.2% to $28 billion.
Investor sentiment was further bolstered by reports that the international credit rating agency Fitch may upgrade Pakistan’s rating in the coming days. According to top official sources, the agency is considering moving the country’s rating from CCC+ to B, reflecting improved macroeconomic stability and a reduced risk of default.
On Monday, the KSE-100 Index had already posted a strong rebound, rising 1,536.70 points, or 1.34%, to close at 116,390.03, reversing the prior week’s losses and reinforcing market optimism.