KARACHI — The Pakistan Stock Exchange (PSX) experienced a sharp rally, gaining nearly 1,600 points following parliamentary approval of the federal budget for the upcoming fiscal year.
What Drove the Surge:
- Investor optimism: The budget included fresh tax relief measures for the middle class, which buoyed consumer sentiment and liquidity expectations.
- Support for key sectors: Significant funding for infrastructure development, energy expansion, and healthcare created confidence among institutional and retail investors.
- Clear policy direction: The absence of new import duties on solar panels and ongoing efforts to stabilize the rupee helped reduce uncertainty.
Market Response:
- Broad-based gains: Major sectors—banking, cement, power and energy—saw share prices rise between 2 percent and 4 percent.
- Trading volume increase: The rally was accompanied by a sharp rise in trading activity, indicating both domestic and foreign investor participation.
- Blue-chip leadership: Shares of state-owned enterprises and leading private firms in infrastructure contributed significantly to the index’s rise.
Analyst Perspective:
- Analysts noted that fiscal discipline in the budget, combined with relief measures for consumers, may result in sustained economic momentum if properly executed.
- However, they caution that success hinges on the government sticking to its revenue and spending targets and following through on proposed reforms.
This story has been reported by PakTribune. All rights reserved.
