KARACHI – Pakistan Stock Exchange (PSX) recorded massive bullish trend on Friday as it crossed two milestones of 177,000 and 178,000 points during intraday trading as easing inflation and foreign investment have bolstered investor confidence.
During intraday trading, the benchmark KSE-100 index moved up by 1,885.49 points to reach historic high of 178,240.98 points compared to previous close of 176,355.49 points.
Experts have attributed the bullish momentum to easing inflation in the country as the development has also been acknowledged by the Bloomberg.
Pakistan’s annual consumer price inflation dropped to 5.6% in December, with prices showing a monthly decline, according to official data released on Thursday.
This follows the State Bank of Pakistan’s (SBP) decision to reduce its key policy rate by 50 basis points to 10.5% last month, ending a four-meeting pause, a move that surprised many market observers.
The inflation rate eased from 6.1% in November, marking a significant decline from the over 30% peak experienced in 2023, as per the data.
Meanwhile, the total liquid foreign reserves of Pakistan stood $ 21,012.2 million as of December 26, 2025 while the reserves held by the State Bank of Pakistan rose to $ 15,915.1 million.
“During the week ended on 26-Dec-2025, SBP’s FX reserves increased by US$ 13 million to US$ 15,915.1 million,” the central bank said in its weekly report.
However, the net foreign reserves held by the commercial banks decreased by $23 million to $5,097.1 million during the week.
