KSE-100 jumps 18.2% but IPO activity remains low, raising concerns over limited fresh investment.
Image: Reuters
Pakistan’s stock market posted strong gains in FY2026, with the KSE-100 index rising 18.2% to 148,743 points, according to the Economic Survey.
Market capitalisation also increased by 8.5%, adding nearly Rs1.3 trillion in value as investor sentiment improved on economic stability and lower uncertainty.
However, despite the rally, only Rs16 billion was raised through IPOs, highlighting weak new capital formation in the equity market. Analysts say investor activity is largely driven by existing shares rather than fresh investment.
Savings through government schemes rose to Rs226.69 billion, showing cautious investors prefer low-risk returns over equities. Corporate registrations also increased, but most new firms remain small in size.
Experts warn that while market gains reflect improved confidence, limited IPO activity and weak investment in productive sectors suggest that financial growth is not yet translating into broader economic expansion or job creation.
