Pakistan Leads the Pack in Global Stock Market Returns Measured in USD

In the dynamic landscape of global finance, Pakistan's stock market has emerged as a top performer, delivering exceptional returns in US dollar terms. As of fiscal year 2025, this achievement underscores the nation's economic progress and appeals to investors looking for high-growth opportunities in emerging markets.

 Pakistan Stock Exchange (PSX) in Karachi

Remarkable Growth Figures

The KSE-100 Index, Pakistan's key stock benchmark, has shown stellar performance with a 55.5% return in USD during FY25, rising to 58.6% in local currency terms. Over the combined FY24 and FY25 periods, Pakistan holds the distinction of being the world's leading equity market in USD returns. In global standings for FY25, it secured third place, following Ghana and Slovenia.

Surpassing Neighbors

When stacked against regional competitors, Pakistan's results shine brighter. India's BSE Sensex recorded a modest 3.2% USD return in FY25, with China's markets at 14.8%. Alternative assessments place India's gains around 6%, revealing a clear performance divide influenced by factors like trade tariffs and investor outflows.

Factors Fueling the Rise

This success stems from positive economic indicators, including credit rating upgrades and reform initiatives that enhance market appeal. Developments such as potential international support for resource exploration have triggered notable index jumps, like a 1.3% increase in late July. In contrast, India faces challenges from expanding trade deficits hitting $27.35 billion in July 2025 and projected GDP reductions of 0.3-0.6 percentage points due to tariffs.

For investors eyeing diversification, Pakistan's market presents an attractive option amid shifting global trends. As 2025 unfolds, this momentum could redefine investment strategies in South Asia.