The boarse roared to new heights on Thursday smashing previous records, fuelled by soaring investor confidence following a sweeping government relief package for electricity consumers and encouraging economic indicators.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index rose by 1,131.37 points, or 0.96%, to finish at 118,938.11. The market touched an intraday high of 119,179.45, climbing 1,372.71 points, or 1.17%, from the previous close of 117,806.74. The day’s low was recorded at 117,508.07.

The rally was sparked by Prime Minister Shehbaz Sharif’s announcement of a significant reduction in electricity tariffs for both domestic and industrial users.

Addressing a special event in Islamabad attended by cabinet members, industrialists, and business leaders, the premier said domestic electricity rates had been slashed by Rs7.41 per unit, bringing the cost down to Rs34 per unit. Industrial users also saw a reduction of Rs7.59 per unit.

The move comes as part of the government’s broader strategy to boost economic productivity and ease inflationary pressures on households and businesses.

The reduction in electricity prices follows a prior request submitted to the National Electric Power Regulatory Authority (Nepra), which was approved after consultation with the International Monetary Fund (IMF). The IMF had earlier agreed to a Re1 per kilowatt-hour cut in utility rates under its ongoing $7 billion loan programme.

Thursday’s rally comes after a relatively flat session on Friday, when the KSE-100 Index closed marginally higher by 34.43 points, or 0.03%, to settle at 117,806.74. That session saw an intraday high of 118,147.25 and a low of 117,551.42.