Investor enthusiasm surged at the Pakistan Stock Exchange (PSX) on Thursday, with the KSE-100 index gaining over 1,700 points in intraday trading following the government’s proposal of the FY2024-25 budget.

Mohammed Sohail, CEO of Topline Securities, attributed the market’s upward momentum to the budget’s decision not to increase taxes on dividends and capital gains for investors.

Raza Jafri, CEO of EFG Hermes Pakistan, noted that the market responded positively to the budget’s favorable adjustments to capital gains taxes for tax filers, contrasting with earlier concerns.

Analysts, including Shahab Farooq from Next Capital Limited, highlighted that recent market pressures eased due to the budget’s clarity and positive impacts, especially in measures targeting non-filers and the real estate sector.

Overall, market sentiment strengthened as investors welcomed the budget’s measures aimed at economic documentation and awaited the IMF’s anticipated response.