On Monday, the Pakistan Stock Exchange (PSX) experienced a significant milestone, hitting a record high by surpassing the 78,000 mark during intraday trading. This achievement marks a new chapter in the country’s financial market.
The benchmark KSE-100 index, which is a key indicator of market performance, surged to an unprecedented level of 78,115 points. By 10:55 AM, the index had gained 1,409 points from its previous close of 77,213. This impressive climb reflects the growing confidence among investors.
Analysts attribute this remarkable surge to the government’s ongoing efforts to secure a deal with the International Monetary Fund (IMF) following the recent budget announcement. The anticipated agreement with the IMF has bolstered market sentiment, leading to increased buying activity in the stock market.
The 2024-25 budget, presented by Finance Minister Muhammad Aurangzeb, outlines ambitious economic targets. The budget aims for a GDP growth rate of 3.6% and an inflation rate of 12%. These targets are complemented by substantial financial commitments to various sectors, indicating the government’s focus on stimulating economic growth and addressing social needs.
One of the key highlights of the budget is the allocation of significant funds for development projects, pensions, and salaries. The government has earmarked Rs597 billion for the Benazir Income Support Programme (BISP), which is aimed at providing financial assistance to the underprivileged.
Additionally, a massive Rs1,400 billion has been allocated for the Public Sector Development Programme (PSDP), which will fund various infrastructure and development projects across the country.
The increase in the KSE-100 index also reflects the market’s positive response to these budgetary measures. Investors are optimistic that the government’s plans will lead to economic stability and growth, encouraging them to invest more in the stock market.
