The Pakistan Stock Exchange (PSX) crossed a remarkable milestone on Monday when it breached the 78,000 barrier to set a new high during intraday trading. This achievement ushers in a new era for the country’s banking sector.
A key measure of market success, the benchmark KSE-100 index, hit an all-time high of 78,115 points. The index rose 1,409 points from its previous close of 77,213 at 10:55 am. This remarkable increase is indicative of the growing self-confidence of investors.
After the latest budget announcement, analysts credit the government’s continued efforts to reach an agreement with the International Monetary Fund (IMF) for this extraordinary increase. The increased buying activity in the stock market is a result of improved market behavior due to the expected agreement with the IMF.
Finance Minister Muhammad Aurangzeb announced the budget for 2024-25 with lofty economic targets. 3.6 percent GDP growth and 12 percent inflation are the budget targets. In addition to these goals, the government has made significant financial commitments to a number of industries with an emphasis on promoting social needs and economic prosperity.
Major highlights of the budget include the amount earmarked for salaries, pensions and development initiatives. The Benazir Income Support Program (BISP), which aims to provide financial support to the disadvantaged, has been allocated Rs 597 billion by the government.
The Public Sector Development Program (PSDP), which will finance a number of infrastructure and development projects across the country, has also been allocated Rs 1,400 billion.
The favorable market response to these monetary adjustments is also reflected in the rise in the KSE-100 index. Investors are encouraged to increase their investment in the stock market as they believe that the government’s policies will bring economic growth and stability.
