PSX hits record high, surges past 81,000 points milestone
- By Web Desk -
- Jul 15, 2024
The Pakistan Stock Exchange’s (PSX) benchmark index KSE-100 hit an all-time high on Monday after crossing 81,000 points level.
The KSE-100 index surged by 1,436 points and touched an intra-day high of 81,380 points.
The benchmark index closed at a new all-time high of 81,155, up 1.52 percent or 1,211 points.
Bullish momentum was observed at the KSE-100 after the International Monetary Fund (IMF) staff and Pakistani authorities reached a staff-level agreement, said economic expert.
Pakistan and the International Monetary Fund reached a three-year, $7 billion aid package deal, the Washington-based institution said on Friday.
The new programme, which needs to be validated by the Fund’s Executive Board, should enable Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth,” according to a statement.
The agreement is subject to approval by the IMF’s executive board.
“The programme aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth,” the IMF statement said, quoting Nathan Porter, the Fund’s mission chief to Pakistan.
“In this regard, the authorities plan to increase tax revenues through measures of 1.5 per cent of GDP in FY25 and 3 per cent of GDP over the programme,” it said. The increase in revenue collections will be achieved through “simpler and fairer direct and indirect taxation, including by bringing net income from the retail, export, and agriculture sectors properly into the tax system”.
The statement added that federal and provincial governments have agreed to rebalance spending activities in line with the 18th Constitution Amendment by signing a ‘National Fiscal Pact’. Under the agreement, subjects including education spending, health, social protection, and regional public infrastructure investment will be devolved to provinces.