The KSE-100 Index sustained its bullish momentum in Aug’25, reaching an all-time high of 150,591 points during the month, on a closing basis, and closed at 148,618 points, posting a MoM gain of 9,227 points. The rally was underpinned by robust institutional and fund inflows, further supported by the ongoing result season.

§  Moody’s upgraded Pakistan’s sovereign rating to Caa1 from Caa2, citing improving external buffers, fiscal consolidation, and reform progress under the IMF program.

§  According to the MoF, the overall fiscal deficit narrowed to PKR 6.2 trillion (5.4% of GDP), improving from 6.8% in FY24. This progress was driven by robust growth in both tax and non-tax revenues, outpacing the rise in expenditures.

§  The Current Account Deficit (CAD) narrowed to USD 254mn in Jul’25, reflecting a 37% YoY decline from USD 348mn.

§  The headline inflation for Jul’25 clocked in at 4.1% YoY compared to 3.2% in Jun’25.

§  In the MSCI Index Review for Aug’25, one stock (FABL) was added to the FM Standard Index, while two stocks (IDYM and JGICL) were added and two removed (HABSM and OCTOPUS) from the Small Cap Index.

§ In addition to this, total circular debt stock in the power sector was reported, where the power circular debt as of Jun’25 declined to PKR 1,614bn.

§  The SBP’s foreign exchange reserves fell by USD 50mn, bringing the total down to USD 14.27bn.

Courtesy- AHL Research