Karachi, June 11, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged to a historic high of 124,352 points on Wednesday, as investors responded enthusiastically to the newly announced federal budget for FY2025-26.
The KSE-100 index recorded a robust gain of 2,328 points or 1.91% from the previous day’s closing level of 122,044 points. This remarkable rally reflects strong investor confidence in the government’s fiscal roadmap and overall economic direction.
Widespread buying activity was seen across multiple sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, oil marketing companies (OMCs), and power generation. Index-heavy blue-chip stocks such as HUBCO, PSO, WAFI, MARI, OGDC, PPL, POL, HBL, MCB, MEBL, and UBL all traded in positive territory, providing significant momentum to the KSE-100 index.
Analysts noted that the rally was largely driven by the absence of major new tax measures in the budget, particularly on capital markets. The retention of the 15% capital gains tax on dividends was seen as a positive signal, encouraging institutional and retail investors to continue engaging with the stock market.
Prime Minister Shehbaz Sharif, in an official statement, expressed satisfaction over the bullish trend at the PSX, stating, “The strong performance of the stock market reflects the business community’s trust in our people-centric budget.”
Finance Minister Muhammad Aurangzeb presented the FY2025-26 budget in the National Assembly on Tuesday, unveiling a total outlay of Rs17.573 trillion. The budget aims to boost economic activity by targeting a GDP growth rate of 4.2%, up from the 2.7% estimated for the outgoing fiscal year.
Aurangzeb described the budget as the beginning of a transformative strategy to make Pakistan’s economy more competitive and export-oriented. Key macroeconomic targets include reducing inflation to 7.5% and bringing down the fiscal deficit to 3.9% of GDP, or Rs5,037 billion. The government also aims to achieve a primary surplus of 2.4% of GDP.
As confidence builds around the stability and growth prospects laid out in the FY26 budget, market watchers expect the KSE-100 index to maintain upward momentum in the coming sessions.