The Pakistan Stock Exchange (PSX) reached a historic milestone on Tuesday as the KSE-100 Index crossed the 124,000-point mark for the first time during intraday trading. The index rose by 1,990.41 points, or 1.63%, reaching 124,014.85 by midday. It peaked at 124,135.96 during the session, with an intraday low of 123,237.99. Trading volumes reached 146.42 million shares, with a total market capitalization of Rs13.84 billion.

This bullish momentum in the stock market follows the announcement of the federal budget for the fiscal year 2025–26, which has been positively received by investors. The market optimism reflects confidence in the government’s stated focus on economic stability and growth.

Finance Minister Muhammad Aurangzeb presented a Rs17.6 trillion budget, emphasizing improvements in economic indicators. In a post-budget briefing, he noted that remittances had reached $31.2 billion so far, with expectations of $37–38 billion by the fiscal year’s end. He also reported GDP growth of 2.7% and a reduction in inflation to 4.7%.

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The National Economic Council (NEC) approved a development spending plan of Rs4.224 trillion. This includes Rs1 trillion for the federal Public Sector Development Program (PSDP), Rs2.869 trillion for provincial Annual Development Plans (ADPs), and Rs355 billion from state-owned enterprises’ own funding.

Looking ahead, the government forecasts a GDP growth rate of 4.2% for the next fiscal year, with inflation and interest rates both projected at 7.5%. The finance minister also highlighted a projected budget deficit of 3.9% of GDP and a primary surplus of 2.4%, signaling a focus on fiscal consolidation and economic resilience.