PSX Hits New High, Crossing 94,200 Points as Mini-Budget Concerns Ease

On Thursday, the PSX’s KSE-100 Index jumped 865 points to reach a record high of 94,225 as investor optimism rose following reports that the IMF is unlikely to push Pakistan for a mini-budget. This rally in stocks is being fueled by expectations of economic stability, as discussions with the IMF show progress.

Khurram Shehzad, CEO of Alpha Beta Core, attributed the positive sentiment to the smooth progress of the IMF’s review, which could lead to the successful completion of Pakistan's $7 billion Extended Fund Facility (EFF). According to Shehzad, investors are responding positively to the IMF’s satisfaction with Pakistan’s recent increase in tax revenues by 1.5% of GDP—a significant achievement that may remove the immediate need for supplementary taxes.

The IMF team’s visit comes amid concerns that Pakistan might have to introduce additional tax measures for “course correction.” However, the Federal Board of Revenue’s (FBR) performance may have alleviated this need, allowing for a smoother economic outlook.

Ahsan Mehanti, CEO of Arif Habib Commodities, highlighted that the rally was led by blue-chip stocks across sectors like commercial banking, oil and gas, and power generation, supported by recent rupee stability, a receding risk of a mini-budget, and falling bank lending rates.

Top-performing stocks included MCB Bank, Meezan Bank Limited, National Bank of Pakistan, Hub Power Company, Mari Petroleum, Oil & Gas Development Company, Pakistan Petroleum, and Sui Northern Gas Pipelines.