KARACHI; A wave of institutional buying and upbeat sentiment across key sectors drove the Pakistan Stock Exchange (PSX) to record levels on Wednesday, with the benchmark KSE-100 index surging past the 144,000 mark. Investor confidence was buoyed by positive developments in the oil sector, an easing fiscal outlook, and improved remittance-related liquidity.
“There’s been a stream of positive developments, and the index has decisively broken through the technical resistance at 140, triggering renewed buying—particularly in oil stocks due to payments made to OGDC,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
The KSE-100 Index climbed 2,051.33 points (1.43%) from Tuesday’s close of 143,037.16 to reach 145,088.49 in intraday trading. It further peaked at a historic high of 145,187.17, gaining 2,150.01 points (1.50%) during the session. The day’s low stood at 143,409.59 points, still up 372.43 points or 0.26% from the previous close.
A significant catalyst behind the market rally was the government’s approval of Rs30 billion from the Rs58 billion backlog under the Telegraphic Transfer Charges Incentives Scheme (TTCIS), which incentivizes remittance inflows by reimbursing transfer costs. The scheme, in place since 1985, had built up a backlog due to a surge in home remittances exceeding allocated funds. The backlog will now be cleared gradually through technical supplementary grants.
Meanwhile, fiscal liquidity expectations were lifted by the government’s borrowing plan of Rs6.175 trillion through Treasury bills and Pakistan Investment Bonds (PIBs) between August and October. As per the SBP’s auction calendar, the strategy includes Rs3.675 trillion in T-bills and Rs2.5 trillion in PIBs, reflecting a shift toward pre-funding budgetary requirements amid anticipated monetary easing. The central bank, honoring its IMF commitments to avoid direct borrowing, kept the policy rate steady at 11% last week, after slashing it by 1,100 basis points from its June 2024 peak of 22%.
Another key market driver was confirmation by Oil and Gas Development Company Ltd (OGDCL) of receiving a Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL), marking the first tranche in a long-pending Rs132.7 billion circular debt settlement. The repayment relates to term finance certificates (TFCs) issued in 2013, with installments due until mid-2026. Previously, OGDCL had booked a Rs23 billion loss due to a discounted valuation of the payments, though Rs10.6 billion of that was reversed by March 2025.
Tuesday also saw positive market momentum, with the KSE-100 index closing at 143,037.16 after trading within a range of 142,235.71 (+183.07) to 143,281.35 (+1,228.7), maintaining bullish sentiment throughout the session.
