The Pakistan Stock Exchange (PSX) has delivered a historic performance over the past two fiscal years, emerging as the best-performing stock market globally in US dollar terms, according to Bloomberg data.
Following Pakistan’s agreement with the International Monetary Fund (IMF) in June 2023, which helped avert a balance of payments crisis, the PSX began a dramatic recovery. Between FY24 and FY25, the market has soared by over 200% in dollar terms, outpacing every other stock market worldwide during this time.
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Despite this exceptional rally, the PSX remains modest in size. Its total market capitalization stands at just $53 billion—around 13% of the country’s GDP—and the market trades at a price-to-earnings ratio of under six. According to Topline Securities CEO Mohammed Sohail, these figures highlight significant undervaluation and point to considerable growth potential.
