The Pakistan Stock Exchange (PSX) witnessed a significant rally as investors reacted to positive developments in ongoing discussions with the International Monetary Fund (IMF).
Market sentiment turned bullish from the start, with the PSX’s benchmark KSE-100 Index surging by 713 points to a historic level of 94,068 points, crossing the 94,000-point mark. Earlier in the session, the KSE-100 Index had already climbed 574 points, reaching 93,932 points, reflecting investor confidence in a potential IMF agreement that could enhance fiscal stability and support Pakistan’s economic reform efforts.
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On Wednesday, the Federal Board of Revenue (FBR) assured the IMF that no mini-budget would be implemented and reiterated its commitment to achieving the annual tax target of Rs12,970 billion. FBR sources also confirmed that the General Sales Tax (GST) would not be applied to petroleum products, aligning with the ongoing IMF discussions.
Additionally, sources reported that the IMF expressed approval of Pakistan’s recent economic progress, particularly the rise in the tax-to-GDP ratio from 8.8% to 10.3%, a 1.5% increase that is viewed as a positive reflection of the country’s fiscal policies.
