PSX gains on budget hopes, economic survey boost

• KSE-100 Index closed at 122,024.44 points, up 383.44 points, or 0.32%.
• Index climbed to an intraday high of 122,611.53, gaining 970.53 points, or 0.80%.
• Session's low was recorded at 121,589.90, drop of -51.10 points, or -0.04%.

Stocks rose on Tuesday as trading resumed after the Eid ul Adha holidays, with investors reacting to the release of the Pakistan Economic Survey and anticipation surrounding the federal budget announcement later in the day.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 122,024.44 points, up 383.44 points, or 0.32%, from the previous close of 121,641.00.

During the session, the index climbed to an intraday high of 122,611.53, gaining 970.53 points, or 0.80%. The session's low was recorded at 121,589.90, reflecting a marginal drop of -51.10 points, or -0.04%.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 122,611.53, gaining 970.53 points, or 0.80%, before retreating to a low of 121,589.90, reflecting a marginal drop of 51.10 points, or 0.04%.

“Stocks reached all-time high led by blue chip scrips as investors weigh Rs17.6 trillion record budget outlay with government approval of PSDP at Rs800 billion in the federal budget FY26 to be announced today,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

“Surging global crude oil prices, terms to resolve over Rs2 trillion gas circular debt crisis and expectations over rationalisation in industrial power tariff in the federal budget played catalyst role in bullish activity at PSX,” he added.

In the Economic Survey 2024–25 presented on Monday, Finance Minister Muhammad Aurangzeb had revealed that Pakistan’s economy grew by 2.7% in the outgoing fiscal year, slightly below the original 3.6% target. Inflation eased to 4.6%, while exports increased 7% and IT exports touched $2.8 billion. Freelancers contributed $400 million in earnings.

He also reported a current account surplus of $1.9 billion for July–April and a 26% jump in revenue collection. Remittances rose by $10 billion over two years.

The federal budget 2025-26 will be tabled in parliament later today. The proposed outlay is Rs17.6 trillion, with the Federal Board of Revenue (FBR) tasked with collecting Rs14.02 trillion in taxes — up from revised estimates of Rs12.33 trillion in FY25.

Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, added: “Positive news flow regarding budget is driving the market, including the news of lower tax rates on corporates, reduction in super tax, clamp down on non-filers, and continuation of the IMF programme.”

According to the Economic Survey, the KSE-100 Index surged by 50.2% over the fiscal year, supported by macroeconomic stability, declining interest rates, strong corporate earnings, and a successful International Monetary Fund (IMF) review. The PSX outperformed several major global bourses, with six new company listings bringing the total to 527 by March 2025.

The previous session, held before the Eid holidays, had seen the index close at 121,641 points, down -157.86 points, or -0.13%.