Stocks smashed through the 150,000 barrier on Tuesday as upbeat forecasts and energy reforms lifted sentiment.

“Mutual funds liquidity is rerating the market. Plenty of cash taking medium term view. Valuations are not cheap anymore,” said AAH Soomro, an independent investment and economic analyst.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 149,770.74 points, up 1,574.32 points, or 1.06%, from the previous close of 148,196.42.

The index climbed to an intraday high of 150,323.38, gaining 2,126.96 points, or 1.44%, The low for the session was recorded at 148,293.94, reflecting a rise of 97.52 points, or 0.07%.

In a boost to sentiment, global credit rating agency Fitch projected Pakistan’s real GDP growth to reach 3.5% by 2027, up from 2.5% in 2024, citing improving fiscal performance, reforms, and ongoing recovery.

“Pakistan’s improved sovereign credit profile reinforces this view,” Fitch noted, referring to its upgrade of the country’s Long-Term Issuer Default Rating (IDR) to ‘B-’/Stable from ‘CCC+’ in April 2025.

The improvement followed Moody’s upgrade of Pakistan’s credit rating by one notch, from ‘Caa2’ to ‘Caa1’, with a ‘stable’ outlook.

Separately, the government’s Task Force on Power unveiled a plan to reduce the country’s mounting gas circular debt, which has risen to Rs2,600 billion.

The proposed five-year strategy includes three measures: imposing a Rs5 per litre petroleum levy expected to raise Rs500 billion; generating another Rs500 billion through dividends from state-owned oil and gas companies; and diverting two LNG cargoes per month from Qatar to international markets to earn Rs500 billion annually.

A senior Petroleum Division official said the plan would cut the gas circular debt by Rs1,500 billion, while the remaining Rs1,100 billion — largely comprising surcharges and interest — is expected to be resolved through waivers.

On Monday, the PSX benchmark KSE-100 Index settled at 148,196.42 points, up 1,704.79 points, or 1.16%, from the previous close of 146,491.63. During the session, it reached a high of 148,395.71, up 1,904.08 points, or 1.3%, and a low of 146,403.64, down 87.99 points, or 0.06%.