PSX continues promising streak with 94,743 on board
Business
KSE-100 index touched 94,982 earlier in the day
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) continued its surge streak by coming close to 95,000 mark ahead of weekend.
The KSE-100 index, with an increase of 552 points, reached 94,743 (to be precise) on Friday.
Earlier in the day, the figure of 94,982 – the highest in country’s history - was recorded.
On Thursday, the KSE-100 index closed at 94,191.
Also Read: Bullish trend continues in PSX
NO MINI-BUDGET
One of the main reasons for surge in stock figure is economic stability, especially after the Federal Board of Revenue (FBR) stated that the IMF was satisfied with the 1.5 percent improvement in the tax-to GDP ratio.
"As a result, no-mini-budget will be introduced and there will be no imposition of General Sales Tax (GST ) on petroleum products," said an FBR official.
FBR sources say the annual tax target of Rs12,970 billion will be maintained. The tax-to GDP ratio has increased from 8.8 percent to 10.3 percent.
POLICY RATE CUT
The State Bank of Pakistan’s committee cut the policy rate by 250 basis points to 15 percent on Nov 5.
The committee noted that inflation had declined faster than expected and reached close to its medium-term target range in October.
It assessed that the tight monetary policy stance continued to play an important role in sustaining the downward trend in inflation.
Meanwhile, the approval of the Extended Fund Facility (EFF) by the International Monetary Fund reduced uncertainty in the country and improved forex reserves.
Later, Pakistan and IMF delegations met for climate financing worth $1 billion. The IMF mission also reviewed the economic performance and budgetary targets achieved by the government after the Staff-Level Agreement.
The lender expressed satisfaction over Pakistan’s progress and slight improvement in tax collection.
