Pakistan’s benchmark share index up 2% day after budget

KARACHI: Pakistan‘s benchmark share index rose 2% in early trade on Thursday to trade at 74,285, a day after the government announced its annual federal budget.
Pakistan set a challenging tax revenue target of 13 trillion rupees ($46.66 billion) for the year starting July 1, a near 40% jump from the current year, in its national budget on Wednesday that looked to strengthen the case for a new bailout deal with the International Monetary Fund (IMF).
The ambitious revenue targets for the fiscal year through June 2025, presented by Finance Minister Muhammad Aurangzeb in parliament, were in line with analyst expectations.
“The market was expecting an increase in capital gains tax and so investors had reduced exposure significantly,” said Adnan Sheikh, assistant vice president of Pak Kuwait Investment Company.
Following the budget and the 150 bps policy rate cut on Monday, the market may even witness a record day as “equities are the best option for the medium term”, he added.