The Pakistan Stock Exchange (PSX) has delivered a record-breaking performance over the last two fiscal years, emerging as the best-performing stock market in the world in US dollar terms, according to Bloomberg data.
Since Pakistan secured the International Monetary Fund’s (IMF) support in June 2023 and averted a balance of payments crisis, the PSX has staged a remarkable recovery.
From FY24 through FY25, the market has surged more than 200 percent in dollar terms, outperforming all other global stock markets during this period.
In FY25 alone, Pakistan ranked among the top ten global markets with a strong 55 percent return, supported by macroeconomic stability, policy continuity, and revived investor confidence.
Despite this extraordinary rally, the PSX remains relatively small, with a total market capitalization of just $53 billion, equivalent to about 13 percent of GDP, and trades at less than six times earnings. According to Topline CEO Mohammed Sohail, this is a sign of deep undervaluation and untapped potential.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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Jurisdiction: Pakistan