Karachi: In an encouraging development for Pakistan's financial markets, the Pakistan Stock Exchange Limited (PSX) has reported a significant upswing in its financial performance for the nine months ending March 31, 2025. According to a recent Directors' Review Report, the stock exchange recorded a pre-tax profit of PKR 1,258 million, marking a 48.20% increase compared to PKR 849 million during the same period last year.
This performance comes amid broader economic stabilization efforts in Pakistan, where GDP growth rebounded to 2.5% in FY2024 and continued its upward trajectory with a 1.54% growth in the first half of FY2025. The government's commitment to reforms, including a $7 billion IMF Extended Fund Facility and various structural adjustments, has bolstered market confidence and helped stabilize the economy.
According to information available from the Pakistan Stock Exchange (PSX), the company earned PKR 529 million from trading activities during the nine-month period, driven by a higher average daily traded value of PKR 39 billion, compared to PKR 21 billion in the previous year. Additionally, the PSX's primary auction platform for GoP Ijarah Sukuk (GIS) generated PKR 69 million, reflecting continued development in this area.
Investor sentiment has significantly improved, with the PSX delivering a 49.2% return in USD terms during the same period. This is attributed to falling inflation expectations and enhanced business confidence, which have collectively resulted in a decline in government bond yields and overall capital market performance. The economic environment has also benefited from a record high in remittances, reaching $28.03 billion in the first nine months of FY2025.
Furthermore, the PSX's post-tax profit rose to PKR 1,108 million, up from PKR 778 million the previous year, with earnings per share climbing to Re1.38 from Re0.97. The exchange also saw new equity securities listings, including Zarea Limited and Barkat Frisian Agro Limited, and continued to develop its market infrastructure.
The exchange has been proactive in enhancing its technological capabilities, achieving ISO 27001:2022 certification for Information Security Management, and integrating with 1LINK to improve investor payment systems. These initiatives underscore PSX's commitment to advancing its market infrastructure and ensuring robust information security.
As Pakistan navigates its economic transformation, backed by comprehensive reforms and improved macroeconomic fundamentals, the PSX remains a pivotal player in the capital markets. The exchange's sustained efforts in innovation and development are expected to continue driving its success, benefiting stakeholders and contributing to the broader economic growth of the country.