The Pakistan Stock Exchange (PSX) reached a historic milestone on Wednesday as the KSE-100 index crossed 124,000 points. This sharp rise came after the government announced the 2025–26 budget, which focused on economic reforms and fiscal responsibility. Investors responded positively to the commitment toward fiscal consolidation. As a result, market confidence improved, leading to a major rally in trading activity.
During intraday trading, the KSE-100 index surged by 1,954 points, or 1.61 percent, reaching a new high of 124,040 points. This strong performance followed a gain of 383 points a day earlier. The bullish momentum reflects optimism about economic stability and policy continuity. The market also reacted well to no change in capital gains and dividend tax rates.
Moreover, a total of over 592 million shares worth more than Rs21 billion were traded on the PSX. Around 473 companies participated in the session. Out of these, 230 companies recorded gains, while 200 saw losses. Meanwhile, 43 companies’ share prices remained unchanged, showing mixed sentiment despite overall market strength.
The rally was further supported by the federal budget speech delivered by Finance Minister Muhammad Aurangzeb on Tuesday. He announced a Rs17,573 billion budget with a 4.2 percent growth target. The budget also aims to increase exports and foreign reserves while reducing payment imbalances. The minister emphasized building a more productive and competitive economy through long-term reforms.
Looking ahead, the government expects 7.5 percent inflation and a 3.9 percent budget deficit for the upcoming year. A primary surplus of 2.4 percent is also projected, marking the third in a row. With this stable outlook, investors see the 2025–26 budget as a step toward a stronger economic future. The PSX rally shows rising trust in the government’s economic direction.