Pakistan has emerged as the best-performing stock market in the world over the past two years, according to Bloomberg, with the Karachi Stock Exchange’s KSE-100 Index delivering an impressive 55.5% return during FY2025.
This performance outpaced much larger economies, including China and India, and highlighted the resilience of Pakistan’s equity market despite ongoing economic challenges.
Market analysts noted that political uncertainty, high inflation, and currency pressures have tested the economy, yet the stock market has continued to grow, reflecting sustained investor confidence.
In comparison, India’s Sensex Index managed only a 3.2% return in FY25, weighed down by US tariffs, foreign investment outflows, and slower corporate earnings growth. China’s markets also struggled, held back by weak domestic demand and global headwinds.
Experts say Pakistan’s equity market has stood out due to strong opportunities in banking, energy, and technology sectors, alongside financial reforms and government support that have boosted investor sentiment.
While risks remain, the sharp rise of the KSE-100 Index has created optimism among both local and foreign investors. Analysts believe that if this trend continues, the stock market could play a vital role in stimulating economic activity and enhancing Pakistan’s global image.
