A noteworthy milestone was reached by the Pakistan Stock Exchange (PSX) on Monday when it broke above the 78,000 barrier during intraday trading, setting a new high. This accomplishment ushers in a new era for the nation’s banking sector.
An important measure of market success, the benchmark KSE-100 index, jumped to an all-time high of 78,115 points. The index increased 1,409 points from its previous close of 77,213 by 10:55 AM. This remarkable ascent is indicative of investors’ increasing self-assurance.
Following the latest budget announcement, analysts credit the government’s continued efforts to reach an agreement with the International Monetary Fund (IMF) for this extraordinary uptick. Increased buying activity in the stock market is a result of the improved market attitude brought about by the anticipated agreement with the IMF.
The Finance Minister Muhammad Aurangzeb announced the 2024–25 budget, which has lofty economic goals. A 3.6% GDP growth rate and a 12% inflation rate are the targets of the budget. In addition to these goals, the government has made significant financial commitments to a number of industries, demonstrating its emphasis on promoting social needs and economic prosperity.
The budget’s major highlights include the amount of money set out for salaries, pensions, and development initiatives. The Benazir Income Support Programme (BISP), which aims to give financial support to the disadvantaged, has been allocated Rs597 billion by the government.
The Public Sector Development Programme (PSDP), which would finance numerous infrastructure and development projects throughout the nation, has also been given a staggering Rs1,400 billion allocation.
The market’s favorable reaction to these fiscal adjustments is also reflected in the KSE-100 index’s rise. Investors are encouraged to increase their stock market investments because they believe the government’s policies will bring about economic growth and stability.
