ISLAMABAD – The Pakistan Stock Exchange (PSX) recorded a strong rebound on Friday, gaining momentum after the National Assembly passed the federal budget for the fiscal year 2025–26.
The benchmark KSE-100 Index surged by 1,581.77 points, reflecting a 1.3% rise to reach 123,628.23 during intra-day trading. The index fluctuated between a high of 123,628.23 and a low of 122,222.69.
At the time of reporting, trading activity had temporarily paused for the Namaz break and was expected to resume shortly.
Market sentiment remained positive throughout the session, with trading volume touching over 81 million shares and the total value of transactions crossing Rs9 billion. Compared to the previous close of 122,046.46, Friday’s gains marked a notable uptick in investor confidence.
The market responded to the approval of the federal budget, amounting to Rs17.6 trillion, which passed in the National Assembly on Thursday. The Finance Bill included Rs463 billion in new taxes and introduced measures to tax Pakistan’s digital economy. However, the largest proposed enforcement provision—to block transactions by ineligible persons—was substantially watered down.
The budget, Prime Minister Shehbaz Sharif’s second under the current term, was approved by a comfortable majority. One key clause passed with 201 votes in favor and 57 against. This was also the second time Finance Minister Muhammad Aurangzeb presented the budget in the National Assembly.
Once signed by President Asif Ali Zardari, the Finance Act 2025 will take effect from Tuesday.
Key allocations in the new budget include Rs8.2 trillion for interest payments—by far the largest spending head—followed by Rs2.55 trillion allocated to defense (excluding pensions and development programs for the military). Subsidies account for Rs1.1 trillion, while Rs1 trillion has been set aside each for pensions and development. Another Rs917 billion will go toward the day-to-day running of the civil government.
