The Pakistan Stock Exchange (PSX) soared to a record high on Wednesday, with the benchmark KSE-100 Index gaining 2,328.24 points, or 1.91%, to close at an unprecedented 124,352.68. During the session, the index peaked at an intraday high of 124,588.17, reflecting strong investor confidence in the wake of the federal budget announcement.
Trading remained active, with 332.58 million shares changing hands and the total traded value reaching Rs31.89 billion.
The rally came a day after Finance Minister Muhammad Aurangzeb unveiled the Rs17.6 trillion federal budget for fiscal year 2025–26. The budget was largely welcomed by market participants, who viewed it as a positive step toward macroeconomic stability and growth.
Economic Highlights Boost Sentiment
During a post-budget briefing, Finance Minister Aurangzeb cited improvements in key economic indicators. Remittances have reached $31.2 billion so far, with an expected year-end total of $37–38 billion. GDP growth is currently at 2.7%, while inflation has declined to 4.7%.
The National Economic Council (NEC) has approved Rs4.224 trillion in total development expenditure, including:
- Rs1 trillion for the federal Public Sector Development Programme (PSDP)
- Rs2.869 trillion for Provincial Annual Development Plans (ADPs)
- Rs355 billion from state-owned enterprises’ internal resources
For FY2025–26, the government has set targets of 4.2% GDP growth, with inflation and interest rates projected at 7.5%. The budget deficit is forecast at 3.9% of GDP, while the primary surplus is expected to hit 2.4%.
Investor optimism around these projections has significantly boosted market momentum, pushing the KSE-100 to new historic levels and reinforcing positive sentiment around the country’s economic outlook.
