PSX loses nearly 2,000 points as year-end profit-taking kicks in

KARACHI: The Pakistan Stock Exchange (PSX) closed Thursday’s session with 1,991.48 points decline. After opening at 112,414.80 points, the benchmark KSE-100 index continued to steadily decline throughout the trading period today. The lowest of the day was recorded at 109,858.88 points, after which the index marginally recovered before closing at 110,423.32 points.

Also read: PSX opens on a cautionary note

Market analysts are of the opinion that the index was taken over by the bears due to the selling pressures by the investors looking for year-end gains. Telecom and energy sectors seemed to take the most hit, with the fertilizer and banking sector managing to stay in the green for the most part.

This volatility in the index has continued from Tuesday, when the KSE-100 index went through a correction period after massive growth of above 4,400 points seen on Monday. Yesterday (Wednesday), the index remained closed on account of the Quaid Day/Christmas, but today it continued with the declining trend from Tuesday.

FINANCE MINISTER, FBR CHAIRMAN ADDRESS TAX ISSUES

Earlier today, Federal Finance Minister Muhammad Aurangzeb and Federal Bureau of Revenue (FBR) Chairman Rashid Langrial held a press conference detailing the need for tax reforms in the country. The FBR chairman said that at least 2.7 million Pakistanis are not filing their tax returns. He also said, “Out of 3.3 million people in the top 5 per cent income category, only 600,000 people file taxes.”

The finance minister said that the government is aiming to avoid burdening the tax payers with more taxes, instead focusing on increasing the tax base.

Also read: Govt mulling tax reforms to achieve 13.5pc tax to GDP ratio: Aurangzeb

Minister for State for Finance Ali Pervaiz Malik also addressed media, saying that even though inflation has greatly reduced, the people of Pakistan still need to pay their fair share of taxes. They also informed that the Pakistan Revenue Automation Limited (PRAL), FBR and other departments concerned are working together to improve tax collection, and to achieve the target of 13.5 per cent tax to GDP ratio. Currently, the tax to GDP ratio in Pakistan is between nine per cent to 10 per cent, the finance minister said.