KARACHI: Following the announcement of budget 2024-25 by the federal government, the Pakistan Stock Exchange (PSX) saw a boom as the KSE-100 index recorded a historic increase of 3,410 points in a single day, a positive change of 4.69 percent, before closing at all-time high of 76,208.16 points against 72,797.43 points the previous day, ARY News reported.
According to expert analysis, investors gained confidence in the government following the presentation of the budget for 2024. The government’s decision not to impose a capital gains tax and not to increase the tax on company dividends has bolstered investor confidence, with many expressing full support for the budget.
A total of 635,525,117 shares valuing Rs30.745 billion were traded during the day as compared to 293,083,473 shares valuing Rs10.541 billion the previous day.
As many as 425 companies transacted their shares in the stock market; 294 of them recorded gains and 87 sustained losses, whereas the share price of 44 companies remained unchanged.
Pakistan budget 2024-25
Minister for Finance and Revenue Muhammad Aurangzeb Wednesday presented Pakistan’s budget for the fiscal year 2024-25 with a total outlay of Rs18.877 trillion.
Outlining the budget points, Finance Minister Muhammad Aurangzeb said that the gross domestic project (GDP) growth target for the fiscal year 2024-25 is fixed at 3.6pc, whereas the inflation rate is expected to remain 12pc.
He said that the budget deficit to GDP during the period under review is estimated at 6.9pc, whereas the primary surplus during the review period is projected at 1.0pc of the GDP.
The minister said that the Revenue collection of
the Federal Board of Revenue is estimated to Rs12,970 billion during upcoming fiscal year, adding that tax revenue collection during the current fiscal year grew by 38 percent and the provincial share would be Rs7,438 billion.
He said that the non-tax revenue targets of the federation are fixed at Rs3,587 billion, whereas the net income of the federal government would be Rs9,119 billion.
The total expenditures of the federal government are estimated at Rs18,877 billion out of the total amount of Rs9,775 billion would be spent on interest payments.
MAJOR POINTS AND ANNOUNCEMENTS
- GDP growth target set at 3.6pc
- Inflation rate projected at 12pc
- Development budget set at Rs1500bn
- 18pc sales tax on smartphones
- Reforms to control pension expenditure
- 101pc increase in development budget
- Development projects for Azad Kashmir, merged districts
- 17 major development projects
- 25pc increase in salaries for BPS1-16
- 20pc increase in salaries for BPS17-22
- 15pc increase in pensions for retired employees
- Minimum monthly wage increased from Rs32,000 to Rs37,000
- Privatisation top priority
- Sales tax to be applied to various goods, services
- 5pc FED proposed on new plots, residential commercial property
- Establishment of Danish schools in AJK, GB, Balochistan and Islamabad
- Penalty for selling smuggled cigarettes
MAJOR ALLOCATIONS IN BUDGET 2023-24
- Rs597 billion allocated for BISP
- SME credit to be increased to Rs1100bn
- Rs79bn allocated for IT sector
- Rs267bn allocated for the energy sector
- Rs206bn allocated for water resources
- Rs7bn allocated for FBR reforms, digitalisation
- Rs86.9bn allocated for promotion of remittances
- Rs1,400 allocated for PSDP
- Rs2,122bn to be provided for defence
- Rs839bn for civil administration
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