Federal Budget triggers bull-run at PSX, index touches all-time high

The investors saluted the Federal Budget 2025-26 while going on a buying spree at the Pakistan Stock Exchange (PSX) triggering the index to storm to new historic high on Wednesday, reported 24NewsHD TV channel.

At he close of business, the PSX’s KSE-100 Index soared by 2,328.24 points or 1.87% to touch all-time high of 124,352.68 points due to positive economic indicators.

Of the 477 companies traded so far, share prices of 282 companies were up, of 157 companies were down while 38 remained unchanged.

Across-the-board buying lifted sentiment on the first trading day after the budget announcement. Market sentiment was buoyed by the absence of any major negative surprises in the federal budget. The decision to maintain the capital gain tax at 15% was seen as a positive move for equity investors.

The rally was broad-based, with significant buying observed in commercial banks, oil and gas exploration, cement, fertilizer, and power generation. Major index contributors included HUBCO, PSO, OGDC, MARI, PPL, POL, HBL, MCB, MEBL, and UBL.

Record PSX surge reflects pro-people budget: PM

Prime Minister Shehbaz Sharif on Wednesday hailing the record surge in the stock market to 124,000 points, said that the bullish trend reflected the confidence of investors and businessmen in the pro-people budget presented by the government on Tuesday.

The prime minister, in a statement, said that in the federal budget 2025-26, the government put no additional tax burden on the common man, and that the pay raise and tax reductions would provide relief to the salaried class. “Alhamdulillah, the journey to national economic progress has begun. The people of Pakistan made immense sacrifices. Now, we all must work together to improve the common man’s life,” he remarked.

He also appreciated the government’s economic team whose efforts led to the reduction in inflation, increase in foreign exchange reserves, remittances, and exports.

“Pakistan’s return from the brink of default, the beginning of economic stability, and the journey toward progress is a miracle. This historic economic turnaround, achieved through the hard work of the economic team and prioritizing Pakistan’s interests, will be etched in history forever,” he commented.

Earlier on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index had closed at 121,798.86 points, up 1,347.99 points, or 1.12%.

During the session, the index climbed to an intraday high of 121,882.47, gaining 1,431.60 points, or 1.19%. The session's low was recorded at 120,896.13, reflecting a gain of 445.26 points, or 0.37%.

Economic analysts said that “Payment of the circular debt coupled with rumours of reduction on various taxation and encouraging offtake numbers from cement and fertilizers have led to a broad-based rally." 

"Also making new highs has triggered an upside on a technical basis,” he added.

The rally came as Prime Minister Shehbaz Sharif declared that talks with the International Monetary Fund (IMF) over the upcoming federal budget had been successful, hailing it as a step towards a new era of economic development.

Speaking in Peshawar, he said the government’s focus would now shift from stabilisation to sustainable growth, backed by institutional reforms.

Meanwhile, Pakistan’s economic team has reportedly persuaded the IMF to drop its demand for an increase in the Federal Excise Duty (FED) on fertiliser from 5% to 10% in the upcoming budget, a move expected to provide relief to the agriculture sector.

Reporter Kavish Memon