Pakistan's stock market has started the new financial year on a strong footing, with foreign investors returning as net buyers for the first time in nearly two years.
The latest investment data points to renewed international confidence in the Pakistan Stock Exchange (PSX).
The current financial year has begun positively for Pakistan's capital market, as the Pakistan Stock Exchange (PSX) has once again attracted the attention of foreign investors.
According to the latest market data, foreign investors purchased shares instead of selling them for the first time in 23 months, marking a significant shift in investment trends.
Foreigners become net buyers after two years
The data shows that foreign investors remained net buyers in the Pakistani capital market after nearly two years, reflecting improved investor sentiment.
In July 2026, foreign investors injected $34.4 million into the Pakistan Stock Exchange, reversing the previous month's trend.
By comparison, foreign investors had withdrawn $180 million from the Pakistani stock market in June 2026, making July's turnaround particularly significant.
Banking, exploration sectors
Foreign investors showed the strongest interest in the banking and exploration sectors during July.
According to the data, overseas investors purchased $13.8 million worth of banking sector shares over the month, making banks one of the top destinations for foreign capital.
Investment also flowed into exploration companies, with foreign investors buying $6.7 million worth of shares in the sector during July.
Cement sector records foreign selling
While banking and exploration companies attracted fresh foreign investment, cement stocks moved in the opposite direction.
The data shows that foreign investors preferred to sell shares of cement companies during July, making the sector the primary area of foreign outflows during the month.
The return of foreign investors as net buyers is being viewed as an encouraging development for Pakistan's capital market and the broader economy.
The strong start to the new financial year suggests that the Pakistan Stock Exchange is once again on the radar of international investors, with renewed interest particularly focused on banking and energy-related companies.
