The stock market experienced another day of gains on Tuesday, fueled by investor confidence stemming from record remittance inflows and increasing optimism regarding the nation’s external account situation.

The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) reached a high of 117,362.22 during the day, which was an increase of 972.19 points, or 0.84%, from the previous day’s closing figure of 116,390.03. The session’s lowest point was 116,645.68, still indicating a gain of 255.65 points, or 0.22%.

This surge occurred after positive remarks from the State Bank of Pakistan (SBP) Governor Jameel Ahmad, who had expressed optimism on Monday that the country’s foreign exchange reserves might reach $14 billion by June 2025.

He mentioned that external payments of $2 billion were anticipated over the next couple of months. Expected inflows of $4–5 billion during the same time may result in a net increase of $2–3 billion in reserves.

Governor Ahmad also predicted that total remittances might reach a record $38 billion by the end of the current fiscal year (FY25), up from $30.25 billion in FY24. The central bank attributed this expansion to greater usage of formal channels, regulatory efforts aimed at stabilising the exchange market, and growing confidence in banking systems.

According to SBP data released on Monday, overseas Pakistanis sent $4.1 billion home in March alone, the most ever in a single month. This was a 37% increase year on year and a 29.8% increase over February. Cumulative remittances for the first nine months of FY25 increased by 33.2% to $28 billion.

The KSE-100 Index had already shown a strong recovery on Monday, rising 1,536.70 points, or 1.34%, to close at 116,390.03, reversing losses from the previous week and bolstering market confidence.