The Pakistan Stock Exchange (PSX) witnessed a bullish trend on Friday as investor confidence surged following the approval of the federal budget. The benchmark KSE-100 Index rose by 1,581.77 points, or 1.3%, during intra-day trading, peaking at 123,628.23 — a notable rebound from the previous close of 122,046.46.
The index remained largely stable, fluctuating between a high of 123,628.23 and a low of 122,222.69 before the market paused for the Namaz break. Trading activity was robust, with over 81 million shares exchanged and a trading value crossing Rs9 billion.
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The positive momentum in the capital market came a day after the National Assembly passed the Rs17.6 trillion federal budget for the fiscal year 2025-26. Despite imposing Rs463 billion in new taxes, the budget appeared to boost investor sentiment, particularly as it brings the digital economy under the tax net while softening enforcement on transactions by ineligible persons.
This marks the second budget presented by Finance Minister Muhammad Aurangzeb and the second under Prime Minister Shehbaz Sharif’s coalition government. The budget allocates Rs8.2 trillion for interest payments, Rs2.55 trillion for defense, and over Rs1 trillion each for pensions, subsidies, and development spending — laying out the government’s fiscal roadmap for the coming year.
