Investor sentiment lifted the equity market on Thursday, posting strong gains amid optimism over upcoming budget measures and adherence to (International Monetary Fund's (IMF) fiscal benchmarks.
“There is overall optimism on IMF's dollar being transferred, budget to remain in line with IMF targets ensuring fiscal discipline and continuing growth story rally,” said AAH Soomro, an independent investment and economic analyst
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 118,971.40 points, up 638.50 points, or 0.54%, from the previous close of 118,332.90.
During the session, the index climbed to an intraday high of 119,639.47, gaining 1,306.57 points, or 1.1%. The session's low was recorded at 118,481.97, still up 149.07 points, or 0.13%.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, noted the market’s tight movement: “Markets are trading within a tight three to four percent range as people are reacting upon what may or may not be a part of the federal budget.”
The government had earlier postponed the budget presentation from June 2 to June 10, citing unresolved fiscal targets under discussion with the International Monetary Fund. Despite the resumption of talks on Thursday, officials confirmed that no breakthrough had yet been achieved.
The Economic Survey — a precursor to the budget, reviewing the country’s economic performance — remains scheduled for June 9, subject to final confirmation.
Meanwhile, Finance Minister Muhammad Aurangzeb indicated earlier this week that the FY26 budget would contain tax relief for the salaried class.
Speaking in Islamabad, he said the government is committed to easing the tax burden on salaried individuals, whose income is taxed at source. He added that the upcoming budget should offer strategic economic direction rather than merely itemising revenues and expenditures.
The federal budget, due June 10, is expected to prioritise fiscal consolidation, broaden the tax base, and reduce untargeted subsidies, aligning closely with IMF guidelines to maintain debt sustainability.
Trading resumed Thursday after a midweek market holiday on account of Youm-e-Takbeer.
In the previous session on Tuesday, the KSE-100 index had gained a modest 111.79 points, or 0.09%, closing at 118,332.91. The day’s high and low stood at 118,807.92 and 118,143.68, respectively.
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KSE-100 Index closed at 136,502.53 points, up 2,202.77 points, or 1.64%
