PSX Loses Nearly 2,100 Points in Early Trade After Concerning Budget News

Pakistan Stock Exchange

The Pakistan Stock Exchange (PSX) experienced a chaotic sell-off during early trading hours today, with the benchmark KSE-100 index losing nearly 2,100 points amid reports of new, burdensome taxes in the upcoming budget.

The market opened at 73,862.93 points, showing bearish sentiments right away. Within the first hour, the KSE-100 index dropped by 2,081 points, hitting an intraday low of 71,781.96 from an intraday high of 73,855.12.

At the time of reporting, the KMI 30 index had fallen by 1,647 points to 120,922, while the KSE All Share index was down by 561 points at 47,109.

The downturn came after mid-week reports suggested the introduction of stricter tax proposals for the next fiscal year. Authorities are considering imposing income tax on capital market instruments (such as bonds and stocks) and capital gains tax, which might be equalized to standard personal or corporate income tax rates in the upcoming budget.

A similar tax approach is expected for real estate.

Additionally, income tax exemptions for mutual funds and insurance products are likely to be eliminated.

These measures are proposed by the International Monetary Fund, which is demanding stringent austerity measures in exchange for a larger bailout program.

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This is an intraday market update.