Pakistan’s equity market began 2026 on a strong note on Thursday, with the benchmark index crossing the 176,000 level for the first time in history, as improved investor sentiment followed an upbeat monthly outlook from the Ministry of Finance, fresh new-year fund allocations, and continued momentum on privatisation.

The Pakistan Stock Exchange’s benchmark KSE-100 Index surged to an intraday high of 176,132.52 points, marking a new all-time peak. The index gained 2,078.2 points, or 1.19 percent, from the previous close of 174,054.32. During the session, it touched a low of 174,437.70, still up 383.38 points, or 0.22 percent.

Commenting on the rally, Huzaifa Riaz, Director at Mayari Securities, said that optimism stemmed from the Ministry of Finance’s latest monthly economic outlook, which was positive on large-scale manufacturing and inflation trends. He added that fresh institutional fund allocations at the start of the new year also supported the upward move at the Pakistan Stock Exchange.

On Wednesday, Prime Minister Shehbaz Sharif highlighted progress on key economic indicators, including taxation, inflation, and external buffers. He said government revenues increased by 26 percent in 2025, more than one million new taxpayers were added, and the tax-to-GDP ratio improved from around 8 percent to over 10 percent.

The prime minister also said the current account balance swung to a $1.9 billion surplus from a $3.3 billion deficit, while foreign-exchange reserves rose from $9.2 billion to $21.2 billion over the past two years. He cited the completion of long-delayed privatisation processes involving Pakistan International Airlines and First Women Bank as key milestones.

Finance Minister Muhammad Aurangzeb said ongoing reforms had helped reduce inflation and improve investment prospects, adding that 16 initial public offerings are expected in the coming year.

Separately, the Cabinet Committee on Privatisation approved a Rs135 billion bid from an Arif Habib Corporation-led consortium for a 75 percent stake in Pakistan International Airlines Corporation Limited, recommending federal cabinet approval as the process moves forward. Deputy Prime Minister Ishaq Dar called for swift execution, saying privatisation could help PIA regain its past standing.

On the final trading day of 2025, selling pressure erased early gains and the KSE-100 Index closed at 174,054.32, down 418.47 points, or 0.24 percent, after fluctuating between a high of 175,232.90 and a low of 173,564.33.

On a year-on-year basis, the benchmark index gained around 59,000 points from 115,126.90 on December 31, 2024, supported by macroeconomic stabilisation, easing inflation, and stronger investor confidence.