The benchmark KSE-100 index fell below the psychological level of 72,000, clearly indicating the market’s sorry state of affairs.

The business day started with a bearish trend and the index touched a low of 71,781 points. However, the 100 index recovered slightly towards the close of business and reached 72,775 points.

The sharp decline in the index is due to concerns over the budget proposals for the fiscal year 2025-2024, which has created a sense of uncertainty and pressure among investors.

Originally, the federal government had planned to present the budget on June 10. However, it has been rescheduled, now the Pakistan Economic Survey is scheduled for June 11 and the budget presentation is expected on June 12. The delay has added to market jitters as investors do not seem optimistic about the final budget details.

A major concern is the possible elimination of tax exemptions, which is reportedly being considered due to pressure from the International Monetary Fund (IMF). If implemented, these changes could include imposing sales tax on tractors and pesticides, which would increase the prices of essential commodities.

Such measures are part of the government’s efforts to meet IMF demands, but they also raise concerns about the impact on various sectors and the overall economy.

Experts believe that this uncertainty and possible tax reforms were the main reasons for stock market volatility. Investors are keeping a close eye on the situation, as the final budget decisions will significantly affect market stability and economic prospects in the coming fiscal year.