Foreign Money Returns To Pakistan’s PSX

Foreign investors turned net buyers at PSX after 23 months, pumping in $34.4 million in July as banks led inflows.

Foreign investors have returned to the Pakistan Stock Exchange after nearly two years on the sidelines, marking their first month of net buying in 23 months. In July 2026, overseas investors injected a net $34.4 million into equities, reversing June’s $180 million outflow, according to NCCPL data cited by AKD Securities and AHL Research.

The shift came in the opening month of fiscal year 2026-27 and stood out because it happened even as the benchmark KSE-100 Index fell 2.3% during July. Analysts said geopolitical tensions continued to weigh on sentiment, but foreign allocations still moved back into the market.

Banking stocks drew the biggest share of that renewed interest, with net inflows of $13.8 million. Oil and gas exploration and production companies followed with $6.7 million, while fertiliser and oil marketing companies attracted $1.7 million and $1.2 million, respectively, AHL Research reported.

Muhammad Awais Ashraf, director research at AKD Securities, said the turnaround was notable after “22 consecutive months” of foreign net selling. He added that July’s inflows marked the first net foreign buying in 23 months, a sharp break from a long stretch of monthly outflows.

Not every sector benefited from the comeback. Technology stocks saw net foreign selling of $3.6 million, while power stocks lost $2.7 million. Cement and textile shares each recorded small net outflows of $0.2 million, showing that the rebound was selective rather than broad based.

Overall foreign buying and selling also showed the change in tone. Overseas investors purchased shares worth $322.3 million and sold $287.9 million in July, leaving them net buyers for the month. For Pakistan’s capital market, the return of foreign money is an encouraging early signal, even if the broader market is still wrestling with volatility.