The Pakistan Stock Exchange (PSX) made history on Tuesday as the benchmark KSE-100 Index crossed the 150,000-point milestone for the first time ever.

The index surged by 1,842 points, closing at 150,039 points, setting a fresh record.

Earlier in the day, the market also broke past the 149,000-point level, continuing its upward trajectory throughout the trading session.

KSE-100 Index sets new benchmark

The benchmark KSE-100 Index rose by 1,171 points, closing at 149,367 points. Earlier in the session, the index had gained 595 points to reach 148,791 points, setting the tone for a strong trading day.

Investor confidence drives rally

Market analysts attributed the rally to expectations of stable economic policies, easing inflation, and prospects of interest rate cuts. The surge comes amid optimism in both local and foreign investor sentiment, boosting overall market activity.

Also Read: Weekly inflation rises by 0.31%

Meanwhile, inflation in Pakistan is projected to settle between 3.75% and 4.25% in August 2025, according to a report by Topline Securities, a private economic think tank.

The monthly increase is expected to be modest at 0.3%, reflecting signs of stability compared to last year’s double-digit price hikes.

Inflation trends compared to last year

The report highlights that inflation stood at 4.07% in July 2025, while in August last year it was 9.63%. Looking ahead, Topline Securities expects the annual inflation rate to range between 6% and 7% by the end of the current financial year, broadly aligning with the State Bank of Pakistan’s forecast of 5% to 7%.

Also Read: Inflation in Pakistan may ease to 4% in Aug: report

Scope for interest rate cuts

With price pressures easing, the think tank noted that the central bank has room to cut the policy rate by 50 to 100 basis points in the coming months. It further projected that the interest rate could decline to 10% by December 2025, potentially lowering borrowing costs for businesses and households.

What will get costlier or cheaper

Topline Securities also forecast changes in essential commodity prices. The report warned that transport, diesel, tomatoes, onions, and eggs are likely to become more expensive this month. On the other hand, relief may come for consumers as fresh fruits, sugar, and chicken are expected to see price declines.