Pakistan's stock market climbs to new heights as investor confidence picks up

Pakistan's stock market climbs to new heights as investor confidence picks up

Business

Mattias Martinsson, CEO of Swedish firm Tundra Fonder AB, said Pakistan is entering a more stable period after years of political instability

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KARACHI (Dunya News) – Pakistan’s journey toward economic stability has pushed its stock market to fresh global highs, reflecting strong investor confidence in the country’s leadership, improved governance, and better financial discipline.

According to a report by Bloomberg, small investors in Pakistan increased their stock investments by 40%, marking a striking turnaround after years of political uncertainty and economic ups and downs. Analysts say the recent surge shows that the market is “back on its feet” and attracting new interest.

Bloomberg notes that the KSE-100 Index jumped 40% in 2025, making Pakistan Asia’s best-performing market. The report credits political stability, improved economic policies, and low-risk investment conditions for drawing Pakistanis toward the stock market.

The publication recalls that Pakistan’s economy was on the brink of default in 2023, but signs of recovery have now “sparked new hope” among investors. It adds that the military leadership played a key role in strengthening ties with the United States and stabilizing the stock market.

Bloomberg further states that the extension of Pakistan’s military leadership until 2030 is being viewed as a sign of political stability. Global credit rating agencies S&P Global Ratings and Fitch Ratings have also upgraded Pakistan’s outlook this year due to improved reforms and stronger financial discipline.

Data shows that 36,000 new trading accounts were opened in the September quarter alone, while daily trading volume at the Pakistan Stock Exchange hit $200 million in October—the highest since 2017.