The Pakistan Stock Exchange (PSX) witnessed a strong rally on Friday as investors showed confidence ahead of the federal budget for fiscal year 2026-27. The benchmark KSE-100 Index gained nearly 2,000 points during the morning trading session, reflecting growing optimism about the government’s upcoming economic policies.
Before trading was suspended for Friday prayers, the KSE-100 Index had climbed by 1,955 points to reach 171,659 points. The sharp increase highlighted positive investor sentiment and expectations of a business-friendly budget.
The market remained active throughout the session. The index touched an intraday high of 171,692 points, while the lowest level recorded during trading was 170,946 points. More than 120 million shares changed hands, with the total value of traded shares reaching approximately Rs9.73 billion.
Investors are closely watching the budget announcement by Finance Minister Senator Muhammad Aurangzeb. Market participants expect the government to unveil measures aimed at boosting economic growth, encouraging investment, and supporting key industries. Expectations of tax reforms, incentives for exporters, relief for salaried individuals, and support for the agriculture and information technology sectors have contributed to the positive mood in the market.
The latest rally comes after another positive trading session on Thursday. The KSE-100 Index had closed with gains of around 276 points, ending the day near the 169,704-point level. Analysts believe the stock market has been gaining strength due to hopes that the government will present a balanced budget focused on economic stability and growth.
Investor confidence has also been supported by encouraging economic indicators released in the Economic Survey 2025-26. According to the survey, Pakistan’s economy grew by 3.7 percent during the outgoing fiscal year. Although this was slightly below the official target of 4.2 percent, it marked an improvement compared to previous years.
The survey showed that inflation declined significantly during the year, easing pressure on households and businesses. Foreign exchange reserves improved, while the current account recorded a surplus, indicating greater stability in the external sector.
Sector-wise performance also remained positive. Agriculture grew by 2.89 percent, industry expanded by 3.51 percent, and the services sector recorded growth of 4.09 percent. The rise in per capita income to $1,901 further strengthened confidence in the country’s economic outlook.
Market experts say blue-chip stocks from the banking, oil and gas, and cement sectors have played a major role in driving the recent rally. These sectors attracted strong investor interest due to expectations that they could benefit from new fiscal measures announced in the budget.
