The PSX has achieved a historic milestone, with the KSE-100 index soaring past 149,770 points, reflecting steady economic improvement in Pakistan. Prime Minister Shehbaz Sharif expressed profound satisfaction, attributing this success to robust government policies and the resilience of the business community. As trading apps gain traction among retail investors, the stock market’s surge signals renewed confidence in Pakistan’s economic future, though challenges remain.
PSX Rally Reflects Economic Optimism
On 19 August 2025, the Pakistan Stock Exchange (PSX) extended its record-breaking rally, with the benchmark KSE-100 index closing at an all-time high of 149,770.75 points, up 1,574 points or 1.06%. This milestone, celebrated by Prime Minister Shehbaz Sharif, underscores the steady progress in Pakistan’s economic landscape. In a statement, Sharif thanked investors and traders for their trust in government initiatives, noting that the stock market’s performance reflects a broader restoration of confidence. “The nation is on a path of development, but further efforts are still needed,” he said, acknowledging the ongoing work of his economic team.
The rally was driven by strong performances in key sectors, including banking and cement, with index heavyweights like Bank AL Habib, United Bank Limited, and Lucky Cement contributing significantly to the gains. Market participation surged, with trading volumes rising to 809 million shares, compared to 610 million the previous day, and a traded value of Rs 48.4 billion. The PSX’s market capitalisation also expanded by Rs 132 billion, reaching Rs 17.771 trillion, a testament to the growing investor enthusiasm facilitated by accessible trading apps.
Trading Apps Fuel Retail Investor Surge
The rise of trading apps has democratised access to the PSX, enabling a new wave of retail investors to participate in the stock market. Platforms offering real-time trading, portfolio management, and market insights have made investing more approachable for ordinary Pakistanis. Analysts note that these apps have contributed to the increased turnover, as retail investors, alongside institutional players, drive the bullish momentum. “The ease of trading through mobile apps has brought a new energy to the market,” said Samiullah Tariq, Head of Research at Pak-Kuwait Investment, highlighting how technology is reshaping investment habits.
However, the reliance on trading apps also raises concerns about speculative trading and market volatility. While these platforms empower users, experts urge caution, emphasizing the need for financial literacy to navigate the complexities of the stock market. The government’s push for digital financial inclusion, coupled with the PSX’s upward trajectory, has created a unique opportunity for wealth creation, but sustainable growth will depend on informed investing.
Economic Reforms Underpin PSX Success
Prime Minister Shehbaz Sharif’s administration has prioritized economic stabilization, with measures like reducing circular debt by Rs 2.6 trillion and improving export figures bolstering market sentiment. International rating agencies, such as Moody’s, upgraded Pakistan’s credit ratings to Caa1, reflecting progress under the IMF’s Extended Fund Facility programme. Analyst Ahsan Mehanti from Arif Habib Corporation noted that the PSX’s record close was driven by a robust economic outlook, with Fitch forecasting 3.5% GDP growth for FY27. Rising cement dispatches and rupee stability further supported the bullish trend.
Despite global market pressures, including a tech-led selloff on Wall Street, the PSX remained resilient, driven by local institutional inflows and corporate earnings. Posts on X reflect public sentiment, with some praising the government’s economic policies, while others express skepticism about long-term sustainability. Sharif, however, remains optimistic, emphasizing that growth in the stock market will create new employment opportunities, benefiting communities across Pakistan.
The PSX’s historic milestone, as celebrated by Shehbaz Sharif, marks a turning point for Pakistan’s economy. With trading apps empowering retail investors and government reforms fostering confidence, the stock market’s surge reflects a nation striving for prosperity. Yet, as the PSX continues to break records, sustained efforts will be crucial to ensure that this economic momentum translates into lasting benefits for all Pakistanis.
Published in SouthAsianDesk, August 20th, 2025
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