Pakistan’s stock market witnessed a remarkable rally on Thursday as investors cheered the federal government’s new budget measures aimed at securing a much-awaited deal with the International Monetary Fund (IMF). The benchmark KSE-100 index surged by a staggering 2,803 points, or 3.85%, to reach 75,600.60 during intra-day trading, reflecting a renewed wave of optimism in the country’s economic prospects.
The impressive gains came on the heels of Finance Minister Muhammad Aurangzeb’s budget presentation, which outlined a series of fiscal consolidation efforts designed to stabilize Pakistan’s financial situation. Among the key goals highlighted were reining in the public debt-to-GDP ratio and reducing the fiscal deficit.
In a bold move to broaden the tax base and bolster revenue streams, the government proposed significant tax hikes across various sectors, including textiles, real estate, and mobile phones. This ambitious target of achieving a staggering Rs13 trillion in tax revenue has been widely seen as a litmus test of the government’s commitment to economic stability and growth.
Read More: Pakistan Set to Unveil Rs. 18 Trillion Budget for 2024-25, Focusing on Key Sectors
Market analysts have welcomed the budget measures, lauding their potential to pave the way for securing the much-anticipated IMF deal. However, they have stressed the importance of effective implementation, noting that the success of these measures will be crucial in achieving the desired outcomes. The IMF deal is viewed as a vital lifeline, promising much-needed financial support and stability for Pakistan’s economy.
The surge in the KSE-100 index reflects investors’ growing confidence in the government’s economic plans and the potential benefits of the IMF deal. Market participants are hopeful that these measures will usher in a more stable and prosperous economic environment in the coming months, providing a solid foundation for sustained growth and development.
As the nation anxiously awaits the outcome of the IMF negotiations, the stock market’s rally serves as a testament to the investor community’s optimism and faith in the government’s efforts to steer the country towards a brighter economic future.
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