Latest news with #FY26
Express Tribune
10 hours ago
- Business
- Express Tribune
KSE-100 retreats on budget jitters, taxes
Listen to article The Pakistan Stock Exchange (PSX) witnessed a volatile session on Thursday, with the benchmark KSE-100 index retreating after hitting record highs a day earlier. Investor sentiment turned cautious due to concerns about stringent conditions linked to a new International Monetary Fund (IMF) programme, including proposed enforcement of agriculture income tax and the IMF's opposition to provincial energy subsidies. Adding to the bearish outlook were fears of aggressive fiscal measures in the upcoming FY26 federal budget. These include possible new taxes on banking and savings income, along with anticipated hikes in petroleum levies on petrol and diesel. A weakening rupee and a 10% year-on-year (YoY) decline in exports for May also dampened investor confidence. Arif Habib Corporation Managing Director Ahsan Mehanti commented that the market declined following reports of IMF pressure for strict enforcement of agriculture taxation and improved tax collection mechanisms, while resisting provincial subsidies on power. "Expectations of higher taxes on banking and savings, increased petroleum levies, rupee instability, and a sharp YoY decline in exports all weighed on sentiment," he said. The KSE-100 index closed at 121,641 points, down 157.87 points or 0.13% from the previous day. Despite the decline, the market remained within a broad range throughout the session, with an intra-day high of +483 points and a low of -281 points, according to Topline Securities. The firm noted that the range-bound activity came ahead of the long Eid holidays, following a recent rally. Topline also highlighted the most traded companies by value, with Unity Foods leading at Rs1.67 billion, followed by Engro Holdings (Rs1.24 billion), K-Electric (Rs1.03 billion), Searle Company (Rs847 million), and TRG Pakistan (Rs785 million). Arif Habib Limited (AHL) noted that despite the minor setback, the week had remained positive overall, with the market touching all-time highs. Engro Holdings (+3.24%), Pakgen Power (+10.0%), and Service Industries (+5.49%) contributed to the index's gains. On the downside, Meezan Bank (-2.11%), Systems Ltd (-1.68%), and Fauji Fertilizer (-0.5%) were key laggards. In broader developments, Prime Minister Shehbaz Sharif is scheduled to visit Saudi Arabia on June 5-6 to meet Crown Prince Mohammed bin Salman for talks on bilateral cooperation, regional security, and economic collaboration. Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) stated in a corporate briefing that its capital expenditure (capex) is expected to hover around Rs30 billion annually over the coming years. Analysts projected 120,000 points to act as a post-Eid base level for the KSE-100, with potential to move higher provided macroeconomic stability continues. KTrade Securities echoed similar views in its market wrap, observing that despite the volatility, trading activity remained strong with volume reaching 854 million shares. Leading the volume chart were K-Electric (179 million shares), Unity Foods (62 million), and WorldCall Telecom (52 million). However, slight profit-taking was noted in banking, cement, and oil and gas sectors. KTrade added that investors are expected to stay cautious in the lead-up to the federal budget announcement on June 10, 2025. JS Global analyst Mubashir Anis Naviwala reported that the index had opened positively and surged to a new intra-day high of 122,281, but profit-taking dragged it down by the close. Notable trading activity was seen in oil & gas, fertiliser, power, and banking sectors. A total of 478 companies' shares were traded. Among them, 217 closed higher, 208 declined, and 53 remained unchanged. K-Electric was the volume leader, gaining Rs0.42 to close at Rs5.83. It was followed by Unity Foods, which rose Rs0.75 to close at Rs26.89, and WorldCall Telecom, which added Rs0.05 to close at Rs1.42. Foreign investors sold shares worth Rs271.6 million, according to the National Clearing Company.
Arab News
3 days ago
- Business
- Arab News
Pakistan stock market hits record high on ADB funding boost, insurance sector buying
ISLAMABAD: The Pakistan Stock Exchange (PSX) surged to an all-time high of more than 120,000 points on Tuesday, with analysts attributing the rally to the Asian Development Bank's (ADB) financing package for Pakistan and strong buying by insurance companies in banking, fertilizer and power sectors. The benchmark KSE-100 index closed at an unprecedented high of 120,450.87 points, marking a gain of 1,573.07 points, or 1.32 percent, from the previous day's close of 118,877.80. The development follows the ADB's approval of an $800 million package to help Pakistan enhance fiscal reforms and economic stability, alongside the government's approval of over Rs800 billion for public sector development projects in the upcoming budget. 'Stocks closed all time high led by scrips across the board after ADB approval of $800 million financing package,' Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News. 'Government set FY26 growth target at 4.2percent and government approval for Rs880 billion PSDP in the federal budget FY26 announcements next week.' Mehanti said the anticipated budgetary relief for oil refineries, real estate and agriculture sectors, along with gains in rupee's value, played a catalytic role in the bullish close at the PSX. Raza Jafri, head of Intermarket Securities, said this was the first time the KSE-100 Index has ever closed above the 120,000-point mark. 'Strong buying by insurance companies in sectors such as banks, fertilizers and power led the market higher,' he said. The budget for fiscal year 2025–26 is expected to be presented in Pakistan's lower house of parliament on June 10, following the Eid Al-Adha holidays. Pakistan's annual inflation rate rose to 3.5 percent in May, though the country's macroeconomic outlook has improved in recent months, supported by a stronger current account balance, increased remittances and declining inflation. Authorities remain cautious as they aim to build on recent economic stabilization, guide the country toward gradual growth, and reaffirm their commitment to ongoing economic reforms.
Express Tribune
3 days ago
- Business
- Express Tribune
PSX closes above 120,000 points for first time
Listen to article The Pakistan Stock Exchange (PSX) closed at a record high, with the KSE-100 index ending the day at 120,450.87, marking its first-ever close above 120,000 points. The market gained 1,573.07 points or 1.32%, reaching an intra-day high of 120,693.83 and a low of 119,129.51. Trading volume stood at 315,235,806 shares, with a total value of 20,897,236,653. The previous close was 118,877.80. Record-breaking bullish sentiment comes ahead of Pakistan's budget this month. Earlier on Monday, the KSE-100 index experienced significant volatility, with an intra-day high of 1,018 points and a low of 899 points, ultimately closing at 118,878, down by 813 points (0.68%). The decline was mainly attributed to concerns over proposed tax hikes on banking and saving schemes, additional petroleum levies, and rising inflation. The Consumer Price Index (CPI) increased by 3.5% year-on-year in May due to higher food prices, dampening market sentiment. Analysts, including Ahsan Mehanti of Arif Habib Corp, noted that the bearish market was driven by uncertainty ahead of the FY26 budget, geopolitical tensions, and fluctuations in the rupee. Topline Securities highlighted that selling pressure came from concerns about a potential 2-3% tax hike on passive income. While some stocks like Pakgen Power, National Foods, Meezan Bank, and National Bank of Pakistan supported the index, stocks like Systems Limited, Engro Holdings, and Pakistan Petroleum weighed it down. Trading volume decreased to 497.9 million shares from 580.3 million on the previous day. The market saw mixed performance, with 29 stocks rising, 71 falling, and 464 companies traded overall. Dewan Cement was the volume leader, while foreign investors sold shares worth Rs1.97 billion. Analysts are cautious, suggesting that the market may face continued pressure in the short term, but it could present a buying opportunity in certain sectors like cement, automobile, and fertilizers.
Express Tribune
4 days ago
- Business
- Express Tribune
P@SHA Chairman urges government not to introduce any new taxes for IT
The Pakistan Software Houses Association (P@SHA) has called on the federal government to not introduce any new taxation and a business-friendly package for the country's information technology sector in the upcoming fiscal budget, set to be presented on June 10. In a statement to the media, P@SHA Chairman Sajjad Mustafa Syed disclosed that of the $700 million invested in Pakistan's IT industry, $600 million originates from companies affiliated with the association. He emphasised the sector's dependence on stability, consistent policies, and supportive incentives to ensure continued growth. 'We are urging the government to implement a fixed tax regime for the next ten years, from 2025 to 2035, and to commit to this in the FY26 budget,' said Syed. Syed also advocated for the continuation of the 0.25 percent withholding tax rate for companies registered with the Pakistan Software Export Board (PSEB) beyond 2026 under the proposed fixed tax system. Highlighting a disparity in tax rates within the sector, he pointed out that remote IT freelancers face a tax rate of only 1 percent, while salaried employees may pay up to 35 percent in income tax. Syed called on the government to harmonise tax treatment across employment categories in the industry. He also underscored the need to ease the transfer of foreign currency revenues, warning that inconsistent policies may hinder foreign direct investment in Pakistan's tech ecosystem. 'Without decisive, pro-business reforms, nearly 600,000 jobs in the IT sector could be jeopardised,' he cautioned.
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Net GST revenue grows 20.4% to Rs 1.7 trn on import taxes: Govt data
Receipts of goods and services tax (GST) after adjusting for refund grew 20.4 per cent year-on-year to ₹1.73 trillion in May on the back of a sharp increase of 72.9 per cent in Customs-related revenue and a decline of 4 per cent in refund outgo, according to the data released by the finance ministry. Sequentially, there has been a nearly 17 per cent drop over April's net GST collection, which stood at ₹2.09 trillion. Gross GST collection in May rose 16.4 per cent to ₹2.01 trillion, with the yield from domestic sources rising 13.7 per cent and import-related revenue going up a sharper 25.2 per cent. Gross GST collection had reached an all-time high of ₹2.4 trillion in April, registering a growth rate of 12.6 per cent. Abhishek Jain, head, indirect tax, and partner, KPMG, said it was encouraging to see gross GST collection again crossing ₹2 trillion in May. 'While last month's (April) spike was expected with year-end reconciliations, consistency this month, along with 16 plus per cent year-on-year growth, points to strong underlying momentum and a recovery that's clearly taking hold,' he added. The generation of eway bills in April had increased to the second-highest level of 119 million, which is reflected in the May GST data, with a year-on-year growth rate of more than 20 per cent for the second consecutive month. 'This (eway bill) robust momentum in goods movement signals sound business activities and is also indicative of stronger GST collection in May 2025,' the Monthly Economic Review, released by the finance ministry last week, had said. M S Mani, partner, Deloitte India, said compared to the FY25 average gross GST collection of ₹1.84 trillion, the ₹2.01 trillion for May, which relates to transactions in the first month of FY26, would provide significant fiscal headroom for the government. 'These figures are also in line with the recent GDP (gross domestic product) growth estimates, which indicate a robust consumption pattern across months,' he added. The state-wise data shows smaller states/Union Territories like Manipur (102 per cent), Lakshadweep (445 per cent), and Chandigarh (53 per cent) posted sharp growth in May on an annual basis, while large consumption and industrial states such as Maharashtra (17 per cent), Tamil Nadu (25 per cent), and Karnataka (20 per cent) also reported robust gains. Mizoram and Uttarakhand rang in declines of 26 per cent and 13 per cent, respectively. '...The average growth across the country doesn't appear to be uniformly reflected across states, possibly due to sectoral or seasonal factors, which require a deeper data based analysis,' Mani added.
