Pakistan Stock Exchange Surges Following Budget 2025-26, KSE-100 Index Gains Nearly 2,000 Points

Karachi:A day after the announcement of the federal budget for FY 2025-26, the Pakistan Stock Exchange (PSX) opened on a positive note, with investor sentiment showing renewed confidence.

Trading on Wednesday began with a strong rally, as the KSE-100 Index jumped by 1,571 points, reaching 123,596 in early hours. As the trading session progressed, market momentum remained bullish, and the index surged further by a total of 1,987 points, climbing to 124,012.

The rally comes after the federal government unveiled a Rs. 17.57 trillion budget on Tuesday. Key budget highlights included a proposed 10% increase in salaries and a 7% hike in pensions, along with a reduction in income tax rates for salaried individuals.

Additionally, the budget proposed lowering the withholding tax rate on property purchases—from 4% to 2.5% for general buyers, and from 3.5% to 2% for filers—moves that were positively received by investors, particularly in the real estate and construction sectors.

Analysts credit the budget’s market-friendly measures and reduced tax burden on individuals as key drivers of the PSX’s bullish response.