On Friday, the Pakistan Stock Exchange (PSX) experienced a significant downturn, plummeting by over 2,000 points early in the day, dropping below the 72,000 level.
The benchmark KSE-100 Index opened with a bearish trend, reaching its lowest point of 71,781.96 at 09:52 am after a sharp decline.
However, by 11:17 am, the KSE-100 index had managed to recover slightly, trading at 72,775.68, albeit still down by 1,087.25 points.
Market analysts attributed this decline to apprehensions surrounding the budget proposals for the fiscal year 2024-2025.
Throughout the week, the market had been experiencing consistent pressure, with each session resulting in a loss of ground.
Initially slated for June 10, the budget presentation for 2024-25 is now expected to take place on June 12.
Following a council meeting on June 10, the Pakistan Economic Survey 2023-24 will be unveiled on June 11.
It is anticipated that the federal budget for 2024-25 will receive approval from the Senate by June 26. As per the demands of the International Monetary Fund (IMF), the Pakistani government is considering ending tax exemptions in the upcoming fiscal year.
The proposed budget suggests the gradual elimination of exemptions on sales and income tax.
Furthermore, there is contemplation regarding the imposition of sales tax on tractors and pesticides, which could potentially result in price hikes for these essential agricultural products.
