Abstract
During the pandemic, the stock markets of developed countries have reported a jittery trend. The current study focuses on the impact of COVID-19 on Pakistani stock market, which belongs to a developing economy. The findings of current study have contradicted with the previous studies, which reported an adverse effect of COVID-19 on developed stock markets. We conclude that KSE-100 index has confirmed positive increment in stock returns. In addition, by using three predicted scenarios of COVID-19, we report the significant increase in KSE-100 index. However, it seems clear that the timely intervention of Pakistani government has safeguard the investors from utter disaster of stock market.