The Pakistan Stock Exchange (PSX) showed strong recovery on Friday as the KSE-100 Index gained 1,581.77 points, rising 1.3% to reach an intraday high of 123,628.23. The index fluctuated between a low of 122,222.69 and the high during trading, reflecting positive market sentiment after the National Assembly approved the federal budget.
Trading activity was robust, with over 81 million shares exchanged and a total value of approximately Rs9 billion. The market paused briefly for the Namaz break but is expected to resume soon, continuing the upward momentum seen after the budget announcement.
On Thursday, the National Assembly passed the Rs17.6 trillion budget for the fiscal year 2025-26, introducing Rs463 billion in new taxes. This includes bringing the digital economy under tax laws. The budget received broad support from the coalition, passing with 201 votes in favor against 57 from opposition members.
The finance bill, presented by Finance Minister Muhammad Aurangzeb for the second time, now awaits presidential assent from President Asif Ali Zardari to come into effect from Tuesday. Key allocations include Rs8.2 trillion for interest payments, making it the largest expenditure in the budget.
Defense spending follows as the next largest allocation, with Rs2.55 trillion set aside, excluding military development programs and pensions. Other major budget heads include over Rs1.1 trillion for subsidies, Rs1 trillion for pensions, Rs1 trillion for development projects, and Rs917 billion for running the civil government.
Overall, the market’s positive response signals investor confidence in the government’s fiscal plans, hoping the budget will stabilize the economy and boost growth in the coming year.