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Pakistan Stock Exchange Achieves Record Growth in 2024, Eyes Continued Momentum
Table of Contents
The Pakistan Stock Exchange (PSX) KSE-100 index experienced a remarkable surge in 2024, solidifying its position as a leading frontier market. This follows positive economic indicators and increased investor confidence.
Key Performance Indicators – 2024
The KSE-100 index delivered a 51% year-over-year (YoY) return in dollar terms, ranking it as the second-best performing frontier market globally, according to a 2025 market performance report by Arif Habib Ltd. This builds on substantial gains in the preceding two years: a 55% increase in 2023 and an remarkable 84% rise in 2024. Over the past three years (2022-2024), the cumulative return reached 249%, the highest among global markets during that period.
• Profit-taking is expected in the short term, but the long-term outlook remains positive.
Economic Context and drivers
Several factors contributed to the PSX’s strong performance. November 2025 saw a 6.15% increase in the Consumer Price Index (CPI), alongside a 9% year-over-year rise in remittances, reaching $3.2 billion. These positive macroeconomic indicators signaled improving economic conditions. Sustained corporate fundamentals, evidenced by strong earnings growth, and increased liquidity further fueled the market rally.
Full-year profits are projected to increase by 10-11%, demonstrating the underlying strength of listed companies. This earnings growth is a key indicator of investor confidence and future potential.
Corporate Activity: IPOs and Mergers
2025 witnessed significant corporate activity, including seven initial public offerings (IPOs). Notable mergers and acquisitions included the deal between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan as reported by Dawn, and Engro Corporation’s acquisition of Deodar Towers according to The News International.Ownership stakes were also sold in lotte Chemical Pakistan Ltd and Mitchells.
These transactions indicate a healthy level of investment and restructuring within the Pakistani corporate landscape.
