Pakistan stocks soar to all-time high on business-friendly budget

Pakistan’s stock market closed at a record high Wednesday as investors welcomed proposed fiscal measures in the 2025-26 federal budget expected to boost corporate earnings and sector profitability.

Analysts said the rally was fueled by business-friendly proposals, including a cut to the Super Tax, which improved market sentiment.

Key budget measures expected to spur economic activity include a zero percent tax rate on textile machinery imports, eliminating duty barriers to encourage industry expansion. The government also introduced a 5 billion Pakistani rupee ($18 million) housing subsidy, removed a federal excise duty, and reduced advance tax on property purchases—steps analysts say could revive the real estate sector and increase demand for steel and cement.

Additional proposals include lower customs duties on imported pharmaceutical ingredients, a move seen as beneficial for local drug manufacturers by improving profit margins. The government also plans to scrap a federal excise duty on residential and commercial plot transfers, a measure expected to stimulate real estate transactions.

Market participants said the budget’s pro-growth policies could drive earnings in key sectors, particularly in the first quarter of the new fiscal year.

"These steps could reignite the real estate sector, creating a ripple effect for allied industries," said an analyst at Arif Habib Ltd.

KSE-100 index gained 1.91% or 2,328.24 points to close at 124,352.68 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 1 paisa to close at 282.21. In the open market USD was trading at PKR 284.45.

Indian Stocks

The Indian stock market closed slightly higher on Wednesday, June 11, helped by mostly positive signals from global markets. Investors continued to take profits in smaller stocks due to high local share prices.

Still, big companies remained strong, as major investors focused on firms with steady earnings.

Analysts say after the recent market rally, there's no clear trend as investors wait for important economic updates and news on trade talks. U.S. inflation figures, expected later today, are likely to show a small rise due to the impact of higher tariffs.

BSE-100 index gained 0.06% or 17.1 points to close at 26,410.86 points.

DFM General Index shed 10.89% or 0.19 points to close at 5,588.56 points.

Crude Oil

Oil prices hit their highest level in seven weeks on Wednesday. This happened because investors were watching how trade talks between the U.S. and China turned out. At the same time, worries over stalled U.S.-Iran nuclear talks also pushed prices up.

U.S. and Chinese leaders agreed on a plan to restart their trade agreement and fix issues over China’s restrictions on exports of rare earth minerals and magnets. The U.S. Commerce Secretary announced this after two days of intense talks in London. The U.S. and China are the biggest economies in the world and use the most oil.

Brent crude prices increased by 1.24% to $67.70 per barrel.

Gold Prices

Gold prices went up on Wednesday as investors rushed to buy it as a safe option. They were worried about an upcoming inflation report and a 30-year government bond sale, which could reveal how people feel about the growing U.S. debt.

On top of that, central banks have also been buying gold to spread out their risk and protect against inflation, especially with global and economic uncertainty in the air.

International gold prices increased 0.23% to close at $ 3,330.16 per ounce. In the local market, gold prices increased by PKR 600 to 352,900 per tola.