The Pakistan Stock Exchange (PSX) soared to an all-time high on Wednesday, a day after the government introduced the Budget 2025-26, which focuses on economic growth and long-term sustainability.
During intraday trading, the benchmark KSE-100 index surged over 1,950 points, surpassing the 124,000 mark for the first time in history. The impressive rally reflected growing investor confidence in the government’s fiscal roadmap.
Read more: Pakistan Stock Exchange Reaches Record High Ahead of 2025-26 Budget Announcement
Market analysts attributed the bullish sentiment to the government’s decision to maintain current rates on capital gains tax (CGT) and dividends on passive income. The unchanged tax treatment for dividends and capital gains further reinforced market optimism.
On Tuesday, the federal government unveiled its 2025-26 budget, amounting to Rs17,573 billion, with initiatives designed to support inclusive and sustainable economic development.
Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb stated that this fiscal plan marks the start of a strategic shift towards a more competitive economy. He emphasized that the budget aims to enhance exports, increase foreign reserves, and promote productivity to reduce payment imbalances.
According to projections, the economy is expected to grow by 4.2% in the upcoming fiscal year, with inflation estimated at 7.5%. The budget outlines a fiscal deficit of 3.9% of GDP and a primary surplus of 2.4%.
