Pakistan's benchmark KSE-100 Index has emerged as the best-performing equity market among 14 major regional and emerging-market indices, delivering the highest returns in US dollar terms over both the three-year and five-year investment horizons, according to comparative data released by the Pakistan Stock Exchange (PSX).

As of June 30, 2026, the KSE-100 posted a remarkable three-year compound annual growth rate (CAGR) of 67.48% in US dollar terms, comfortably leading all markets included in the comparison. The second-best performer, Sri Lanka's CSE All Share Index, recorded a CAGR of 30.81%, less than half of Pakistan's return.

Over the five-year period, the KSE-100 again ranked first with a 17.17% CAGR, narrowly outperforming Singapore's FTSE Straits Times Index (16.80%) and the UAE's DFM General Index (16.35%), highlighting the sustained strength of Pakistan's equity market over the medium term.

On a one-year basis, the KSE-100 generated a 46.40% return in US dollar terms, ranking third among the 14 markets. Only South Korea's KOSPI, which returned 141.22%, and Thailand's SET Index, with 49.26%, delivered stronger gains during the period.

Pakistan also outperformed several prominent global and regional benchmarks, including the MSCI Emerging Markets Index (44.18%), MSCI Frontier Markets Index (35.39%), Singapore's FTSE Straits Times (33.95%), Japan's TOPIX (26.93%), and China's Shanghai Composite (25.50%).

At the lower end of the rankings, Indonesia's Jakarta Composite Index recorded the weakest performance, posting negative returns across all measured periods, including -26.04% over one year, -11.42% over three years, and -5.48% over five years.

Similarly, India's Nifty 50 delivered a -14.38% return over one year, although it recovered to positive territory over longer investment horizons with 3.95% and 5.02% CAGRs over three and five years, respectively. Saudi Arabia's Tadawul FF Index and Hong Kong's Hang Seng Index also recorded negative returns over multiple periods.

According to the PSX, Pakistan's strong performance reflects the country's improving macroeconomic environment following the stabilization measures introduced since 2023. Key drivers behind the rally include easing inflation, a significant decline in the State Bank of Pakistan's policy rate from its 2023 peak, improving external account indicators, and continued progress under the IMF-supported reform programme.

The sustained rally has also been supported by attractive market valuations, improving corporate profitability, and robust earnings growth across key sectors, particularly banking, cement, and energy. These factors have attracted both domestic and foreign investor interest, driving the KSE-100 to successive record highs.

The PSX further noted that Pakistan's superior US dollar returns were reinforced by the relative stability of the Pakistani rupee during the review period. Unlike several regional markets where currency depreciation diluted equity returns for foreign investors, Pakistan's stable exchange rate enabled investors to fully benefit from the strong appreciation in local share prices.

The latest performance rankings underscore the KSE-100's emergence as one of the strongest-performing equity markets globally and highlight the growing confidence in Pakistan's economic recovery and capital markets.