The scholarship extended its historic rally on Tuesday, postponing the reference KSE-100 index above the 120,000 mark, pulled by the cease-fire agreement with India, the publication of the financing of the International Monetary Fund (IMF) and tax relief measures provided for in the next federal budget.
The momentum continued in relation to the record session on Monday, as investors praised the improvement of macroeconomic indicators and diplomatic breakthroughs.
“Early trade shows the continuation of an enticing gathering yesterday, the mutual funds were aggressively active in the company yesterday, and this trend should continue today. Positive events, such as the approval of the IMF and a drop in rate, had not been taken into account in the continuous tension with India, which is slowly incorporated”.
“Another positive will be the fact that the Pakistani budget would be made to Rs290 a dollar, as reported by the newspaper, which indicates tamed inflation in the future.”
Pakistan Pakistan Benchmark KSE-100 index of Pakistan Pakistan has climbed to an intraday summit of 120,067.12 points, up 2,769.39 points, or 2.36%, compared to the previous fence of 117,297.73. The index crossed the threshold of 120,000 before on April 4.
The Minister of Finance Mohammad Aurangzeb, in an interview with Reuters, minimized the budgetary impact of military climbing, saying that it could be absorbed without a revised economic assessment.
He confirmed that Pakistan would receive a branch of $ 1 billion from the IMF on Tuesday, part of its prolonged funding of $ 7 billion (EFF). The IMF board of directors also approved an additional $ 1.4 billion under the installation of resilience and sustainability (RSF) to support climate -related initiatives.
For the future, Aurangzeb said that the budgetary talks with the IMF will be held from May 14 to 23 and that the federal budget of 2025-2026 would be finalized in the three to four weeks.
The government has proposed a reduction in the income tax burden of up to 50 billion rupees for the salaried class, with in progress efforts to fill the gap thanks to other tax measures. During the first ten months of fiscal year 25, salaried taxpayers contributed to more than 450 billion rupees, much more than the combined collections of retailers and exporters.
Adding to the bullish feeling of the market, inflation in April dropped to a record level of 0.3% in annual shift, while the Pakistan State Bank reduced its policy rate by 100 points to 11%, marking an evolution towards pro-growth monetary policy.
These developments, as well as calm and fresh financing, have fueled the optimism of investors.
Monday, the KSE-100 index displayed its biggest day-in-history gain, increasing by 10,123.09 points, or 9.45%, after Pakistan and India agreed with a surprise cease-fire.
The breakthrough, partly facilitated by the United States, has helped defuse weeks of increasing tension and has triggered aggressive purchases in the main sectors.