The equity market rallied on Thursday, with the Benchmark KSE-100 index reaching a new summit of all time at the start of trade, continuing its upward trajectory while investors maintained the purchase of dynamics in the key sectors.
The rally follows sustained earnings by softening geopolitical tensions and expectations of a stable economic roadmap under the supervision of the International Monetary Fund (IMF).
The reference index of the Pakistan Stock Exchange (PSX) has reached a new historic summit of 120,699.17 points, increasing 767.72 points, or 0.64%, during the intra-day trader, up compared to the previous fence of 119,931.45.
The index also marked a minimum of 120,210.56, still increased by 279.11 points, or 0.23%, during the early session, maintaining a bullish tone closes throughout.
“It is a continuation of the relief of the rally after the Indo-Pak war,” said Aah Soomro, an independent investment and economic analyst. “The market remains overall attractive with more investors who deploy funds in a coherent manner.”
“The agreement with the IMF on the budget is likely to give an impetus to the actions of the growth sector and to prosecute Bull Run around 150,000 in a year,” he added.
Investor confidence was also supported this week after Pakistan’s nominal GDP has crossed the $ 400 billion mark for the first time, according to provisional estimates approved by the National Accounts Committee (NAC).
The size of the economy extended to Rs114.7 Billions ($ 411 billion) in FY5, against 105.1 Billions of rupees ($ 372 billion) in the previous year. NAC also reported GDP growth of 2.68% for the current year, quarterly revisions showing growth of 1.37% in T1 and 1.53% in T2, although still below the initial objective of 3.6% of the government.
Meanwhile, budgetary negotiations between the government and the International Monetary Fund (IMF) remain underway. The IMF is put pressure for higher taxation on inputs related to agriculture, including an increase in federal excise duties (Fed) on fertilizers from 5% to 10% and the introduction of a 5% tax on pesticides.
Prime Minister Shehbaz Sharif would have urged the fund to reconsider these proposals, citing the tension that such measures may impose on the agricultural sector.
The IMF also argues for the implementation of agricultural income tax (AI) from July 1, 2025, and pressure for wider tax insurance reforms, including uniform turnover thresholds for the recording of income and TPS.
Preliminary projections suggest that ATA could increase 40 to 50 billion short -term rupees in provincial collections.
The rally follows the high performance on Wednesday, when the KSE-100 index closed at 119,931.45, winning 960.33 points, or 0.81%.