PSX plummets over 2,000 points amid budget concerns

Karachi: The Pakistan Stock Exchange (PSX) on Friday witnessed a major downturn, with the index plummeting over 2,000 points early in the day, dropping below the 72,000 mark.

The KSE-100 Index started the session with a bearish trend.

By 09:52 am, it had plunged more than 2,000 points, reaching a low of 71,781.96.

However, by 11:17 am, the KSE-100 index showed some recovery, trading at 72,775.68, though still down by 1,087.25 points.

Market analysts attributed this decline to concerns regarding the budget proposals for the fiscal year 2024-2025.

The index had been under consistent pressure throughout the week, losing ground in each session.

The budget for 2024-25, originally scheduled for presentation on June 10, is now likely to be unveiled on June 12.

The Pakistan Economic Survey 2023-24 will be presented on June 11, following a council meeting on June 10, according to sources.

The federal budget for 2024-25 is expected to receive Senate approval by June 26. It is anticipated that the Pakistani government will eliminate tax exemptions in the upcoming fiscal year budget as per the International Monetary Fund's (IMF) recommendations.

The budget proposals for 2024-25 indicate a phased end to sales and income tax exemptions. Additionally, the government is considering imposing a sales tax on tractors and pesticides, which could result in price increases for these essential agricultural products.