Stock market investors
ISLAMABAD: Pakistani stock market investors welcomed the pro-IMF budget and the 100-index gained 1000+ points on Monday noon.
The market witnessed a bullish sentiment on Monday amid hopes that Pakistan and IMF will sign a crucial Staff Level Agreement (SLA). It will lead to the resumption of the stalled $1.1 billion tranche in coming days.
A screenshot of stock market trading showing 1080 points increase on Monday.
On Monday, around 12:35 noon, the KSE-100 index gained 1000+ points, hitting 41,143.87 points. It is the first sign of the possibility of signing of the SLA between Pakistan and IMF.
The National Assembly has passed the new budget on Sunday after the finance ministry incorporated key changes in the budget as per the demands of the IMF.
NA passes new budget
The government has increased the tax collection target to over 9.4 trillion rupees from the proposed target of 9.2 trillion rupees in a bid to please the IMF.
For the fiscal year 2023-24 starting next month, the government has decided to enhance Rs215 billion in tax revenue and reduce Rs85 billion in spending.
Finance Minister Senator Muhammad Ishaq Dar disclosed this on Saturday in the National Assembly.
“Pakistan and the IMF had detailed negotiations as a last-ditch effort to complete the pending review,” Dar told the parliamentarians.
Finance Minister said that the government has completed all the conditions of the IMF to unlock a 1.1 billion dollar held-up tranche.
Finance Minister also said the government held talks with the IMF seriously. He said that once the government settles a deal with the IMF, we will share details with the Parliament and the public. The government will place its agreement with IMF on the website of the Ministry of Finance.
New Tax target for 2023-24
Dar said the proposed tax collection target of the FBR would be Rs 9.415 trillion against the earlier proposal of Rs 9.2 trillion.
He said the provincial share will increase from Rs5.276tr to Rs5.390tr, the federal government total expenditure estimate from Rs14.460tr to Rs14.480tr, and the pension estimate from Rs761 billion to Rs801bn.
Senator Muhammad Ishaq Dar further said the subsidy estimate is around Rs1.064tr and grants at Rs1.405tr.
