PSX sees historic rebound after ceasefire, IMF tranche approval

The Pakistan Stock Exchange (PSX) recorded a historic rally during the week ending May 17, 2025, as the KSE-100 Index gained 12,474 points to settle at 119,649, reflecting an 11.64 per cent increase week-on-week. This marked one of the biggest weekly advances in the index’s history, driven primarily by a US-brokered ceasefire agreement between Pakistan and India on May 10. The easing of geopolitical tensions following a week of heightened volatility had an immediate stabilising effect on investor sentiment. The rally was further supported by the International Monetary Fund’s (IMF) approval of the first review of Pakistan’s loan programme and the disbursement of a $1 billion tranche. Additionally, the IMF’s approval of a further $1.4bn under the Resilience and Sustainability Facility reinforced optimism in the market, leading to a record single-day gain of 10,123 points at the start of the trading week.