PSX hits all the high after the National Assembly cleans the budget26

The Pakistan Stock Exchange (PSX) hit a high record on Friday, as investor confidence has increased in renewed US-Pakistan trade and parliamentary approval of the federal budget.

The KSE-100 index closed at 124,379.06, increased 2332.60 points, or 1.91%, from the previous closure of 122,761.64.

The market briefly touched the high of 125,285.05 points during inter -business negotiation. Trading volumes remained strong with 220.312,628 shares exchanged.

“Optimism is returning due to US-Pakistani and macroeconomic suspension ties,” said independent investment and economic analyst AAH Soomro. “The valuations are attractive compared to the alternatives of fixed income,” he added.

The National Assembly approved on Thursday the federal budget for FY2025-26, up to RS17.57 trillion, after adopting amendments to the 2026 funding bill.

Finance Minister Muhammad Aurangzeb has presented revisions, including changes to the sales law law, mainly a clause authorizing the Finance Committee to allow arrests in cases of tax fraud of over 50 million Rs.

The bill also provided a revised income tax structure for leased people. Income up to the RS600,000 remain free from taxes, while RS600,000-1.2 million will be taxed at 1%. Fixed tax plates apply to higher brackets, with scaling up to RS346,000 for incomes between Rs3.2 million and RS4.1 million.

In a boost to market feeling, Pakistan and the United States are on the right track to complete the ongoing trade talks, with both sides actively exploring a preferable trade agreement (PTA) with the aim of enhancing mutual access to the market and boosting bilateral trade.

The finance minister held a virtual meeting with US Secretary of Commerce Howard Lutnick on Tuesday to discuss pricing arrangements. According to an official announcement after the meeting, both sides expressed their confidence in completing trade negotiations at the earliest.

Following Marshal Asim Munir’s recent visit to the US, diplomatic and financial channels between the two nations have intensified. Negotiators are currently investigating trails to finalize either a PTA or by bilateral trade agreement (BTA).

Investor confidence was also reinforced by continuing support by the Pakistanis overseas through the Roshan (RDA) digital account, with total inputs reaching $ 10.38 billion from September 2020 to May 2025.

According to Saad Hanif, head of the ISMA IQBal Securities survey, RDA’s $ 6.65 billion has been invested locally, mainly in Naya Pakistan certificates and Equity Roshan, while $ 1.95 billion remain re -hosting.

On Thursday, the KSE-100 was reduced by 715.18 points, or 0.58%, to close at 122,046.46. The index had reached a high of 123,417.87 and a low 122.142.43 during the meeting.