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

The benchmark index surged by 1,842 points, closing at 150,039 points, and setting a new all-time record. Earlier in the session, the index had also broken the 149,000-point level, keeping investors upbeat throughout the trading day.

Just a day earlier, the index climbed by 1,171 points to close at 149,367 points. During that session, it touched 148,791 points, signaling strong market momentum.

Read More: Gold prices drop in Pakistan amid Global decline

Market experts say the rally reflects growing confidence in Pakistan’s economy. Investors are optimistic about stable government policies, easing inflation, and the possibility of lower interest rates. Both local and foreign investors are actively participating, adding more strength to the bullish trend.

According to a report by Topline Securities, inflation is expected to remain between 3.75% and 4.25% in August 2025. This is a sharp improvement compared to August 2024, when inflation stood at 9.63%.

The report also noted that inflation was recorded at 4.07% in July 2025. By the end of the financial year, annual inflation is projected between 6% and 7%, aligning with the State Bank’s target.

Also Read: Pakistan’s wealthiest business tycoons ranked in first wealth perception index 2025

With price pressures cooling, analysts believe the central bank has room to cut interest rates. Topline Securities predicts the policy rate could drop by 50 to 100 basis points in the coming months, potentially reaching 10% by December 2025. This would reduce borrowing costs for both businesses and households.

The report also forecast changes in essential items. Transport, diesel, tomatoes, onions, and eggs may become more expensive. On the brighter side, fresh fruits, sugar, and chicken could see price cuts, bringing relief to consumers.