ISLAMABAD: The Pakistan Stock Exchange (PSX) has emerged as the world’s best-performing stock market over the past two fiscal years, delivering extraordinary gains of over 200% in US dollar terms.
This remarkable performance is highlighted by Bloomberg data and reflects Pakistan’s economic resilience following the IMF support secured in June 2023, which helped avert a balance of payments crisis.
From FY24 to FY25, the PSX outpaced all other global markets, driven by improving macroeconomic conditions and renewed investor confidence.
Strong Returns Amidst Market Potential
In FY25 alone, the PSX delivered a robust 55% return, placing Pakistan among the top ten global markets for annual performance.
The growth was supported by stable policies and a more confident investment environment.
Despite this rally, the PSX remains relatively small with a market capitalization of $53 billion—only about 13% of Pakistan’s GDP—and trades at a price-to-earnings ratio of less than six times.
Undervalued Market with Growth Opportunities
According to Topline CEO Mohammed Sohail, the current valuation reflects significant undervaluation and untapped potential in Pakistan’s equity market.
This presents an attractive opportunity for both domestic and foreign investors looking for high-growth investments.
As the PSX continues to build on this momentum, it is expected to draw increased interest from global financial markets.
