Pakistan – (Web Desk) – KSE-100 gains today reflect a wave of investor confidence, as two major events — the US-Iran peace deal and Pakistan’s federal budget for FY27 — combined to push the index sharply higher on Monday.
The benchmark KSE-100 Index had already closed Friday at 172,399 points, up 2,696 points or 1.59%. On Monday morning, it surged nearly 4,400 more points, crossing 176,767 in early trading.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, said the budget has clearly shifted direction — from consolidation toward growth. He added that the Iran-US resolution has calmed fears of a rate hike and sparked buying across all sectors, especially construction.
The United States and Iran confirmed a peace agreement on Monday, bringing an end to three months of conflict. Pakistan served as the mediator. A formal signing ceremony is scheduled for June 19 in Switzerland.
US President Donald Trump announced that the Strait of Hormuz will reopen without any tolls and that the US naval blockade of Iranian ports will also end. Iran’s Deputy Foreign Minister confirmed the deal puts an immediate end to the war.
Global oil prices dropped sharply on the news. West Texas Intermediate fell close to $80 per barrel, while Brent crude dropped over 4% to around $83.60. Lower oil prices eased fears of fresh inflation and reduced pressure on central banks to raise interest rates.
On the domestic front, Finance Minister Muhammad Aurangzeb presented Pakistan’s federal budget for FY27 on Friday. The government is targeting GDP growth of 4%, with a projected fiscal deficit of 3.6% of GDP. Tax revenue is expected to grow by 17.6%.
AKD Research called the budget broadly positive. Key highlights include the removal of Super Tax for companies earning below Rs500 million, and a 2% reduction for larger companies — benefiting around 67% of PSX-listed firms.
The budget also brought relief for exporters, with reductions in advance tax and withholding tax, along with the abolition of the Export Development Surcharge. The cement sector stands to gain from lower property taxes and a higher PSDP allocation of Rs3.7 trillion.
The State Bank of Pakistan’s Monetary Policy Committee is meeting today for the final policy review of FY26. The only rate hike this fiscal year came on April 27, when the SBP raised the benchmark rate by 100 basis points to 11.5%. Analysts now expect the rate to hold, given easing oil prices and calmer global conditions.
Comments are closed, but trackbacks and pingbacks are open.