PSX Reaches to Its Highest Point ever 124,000 Points Today

The government of Pakistan on June 10th introduced a budget for 2025-2026. It has taxed everyone, including freelancers, this time, but not PSX investors. As taxes are the same for PSX investors as last year, and due to this, this was the main reason that PSX witnessed growth due to additional taxes for the investors. It was rumored by the media that capital gains taxes or mutual fund taxes would be increased; however, it was not true when the budget was presented and its details were published. 

It is expected that individuals will invest in PSX from next FY, as it is legally tax-saving for them. Even now, properties are taxed heavily, and the Pakistan Stock Exchange is the only platform that has the same taxes compared to last year, which is a 15% tax on gaining profits. Mutual fund flows are expected to rise as the government of Pakistan increases debts, savings accounts, or interest-rate-based income profits, which will now be subject to 20% WHT for filers, which was 15% last year. However, non-filers will have to pay 35% of the WHT from their profits. 

Now the government of Pakistan has also ensured that only filers will be able to invest in debts, purchase cars, or invest in mutual funds. Non-filers will face massive restrictions from the government. However, it is expected that the FBR cannot implement everything at once due to understaffing and not advancing enough. Even advanced countries like the US IRS would normally take 2 years to fully implement any kind of new law, let alone the FBR. Moreover, it is also expected that international investors will invest in PSX, as it is the least taxed sector for now. It is predicted that by the next FY, PSX will end at 160,000-170,000 points compared to this FY.