Record rally tosses index above 76,000
Despite trade and industry’s criticism of the tax-laden budgetary proposals for the next fiscal year, the Pakistani share market on Thursday staged an unprecedented single-day rally of almost 4 per cent in the post-budget session, lifting the index to a record closing above 76,000 closing. Speaking with Dawn, Aqeel Karim Dhedhi, a veteran stockbroker and chairman of AKD Group, attributed the market rally to positive budgetary proposals, including higher development spending, withdrawal of tax exemptions, and bringing the high-earning export sector and non-filers into the regular tax net. Explaining the market downturn a week before the announcement of the federal budget, he said the market was abuzz with propaganda that taxes on dividend income, CGT, etc., would be doubled, which shook investor confidence, especially foreigners. However, the budgetary proposals mainly target untaxed areas and potential non-filers. Hence, a robust rally reflects a positive economic outlook for the next fiscal year.