KARACHI, Pakistan — The Pakistan Stock Exchange (PSX) soared to unprecedented levels this week, driven largely by investor enthusiasm surrounding the landmark privatisation of Pakistan International Airlines (PIA). Analysts say this historic move, one of the largest privatisation deals in the country’s history, has injected fresh confidence into the market and encouraged robust buying across key sectors.
Despite a shortened trading week due to the Quaid‑i‑Azam’s birthday holiday, the KSE‑100 Index climbed above the 172,000 mark for the first time, setting a new all-time high. Market insiders attribute this surge to the successful sale of a 75% stake in PIA to a consortium led by the Arif Habib Group, worth over Rs135 billion. Investors viewed the deal as a major milestone in Pakistan’s broader economic reform agenda, signalling stronger policy support and structural adjustment progress.
Experts note that macroeconomic factors also played a crucial role in bolstering investor sentiment. The recent cut in the State Bank of Pakistan’s policy rate, along with strong demand in government securities, provided added momentum for the market. Lower borrowing costs and increased liquidity encouraged both local and foreign investors to increase their exposure to equities, particularly in sectors such as technology, fertilisers, and real estate, which led the gains.
Analysts believe that the PIA privatisation has sent a strong signal to investors about the government’s commitment to economic reform and strategic divestment of state assets. The successful transaction is expected to not only strengthen investor confidence but also pave the way for further reforms and potential foreign investment inflows in early 2026.
While some volatility remains a feature of the market, the record-breaking run reflects growing optimism that policy clarity and landmark economic decisions can deliver sustained momentum to Pakistan’s financial markets. Investors and traders alike are watching closely to see whether this trend will continue as the new year approaches, with hopes that the PSX rally may mark the beginning of a broader market upswing.
This story has been reported by PakTribune. All rights reserved.