The Pakistan Stock Exchange (PSX) opened on a positive note Friday as the benchmark KSE-100 Index surged by 1,242.75 points (1.02%), reaching an intraday high of 123,289.21. The bullish trend followed the National Assembly’s approval of the federal budget for FY2025-26, amounting to Rs17.57 trillion. Investor sentiment strengthened amid expectations of economic stability and policy continuity.
Finance Minister Muhammad Aurangzeb introduced key amendments to the Finance Bill 2026, including revisions to the Sales Tax Act, which now allows authorities to arrest individuals involved in tax fraud exceeding Rs50 million. Additionally, the budget outlined a revised income tax structure for salaried individuals, maintaining tax exemption for earnings up to Rs600,000 while introducing progressive rates for higher brackets. These measures were seen as steps toward fiscal discipline and broadening the tax net.
Investor confidence was also reinforced by sustained inflows through the Roshan Digital Account (RDA), with total deposits reaching $10.38 billion from September 2020 to May 2025. In May alone, RDA inflows rose by 13% month-on-month to $201 million, with the total number of accounts climbing to 823,224. Analysts noted that $6.65 billion of these funds have been invested locally, primarily in Naya Pakistan Certificates and Roshan Equity.
According to Saad Hanif, head of research at Ismail Iqbal Securities, the combination of budget clarity and strong foreign investment signals a positive outlook for the equity market. With $1.95 billion in repatriable RDA funds still available, further inflows could sustain the upward trend. The PSX’s strong opening reflects growing investor trust in Pakistan’s economic trajectory.