PSX closes lower amid IMF agri tax compliance demand, profit-taking

KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index witnessed volatility throughout the session on Thursday, hitting an all-time intraday high of 122,281.58 points before profit-taking erased gains.

The index closed slightly lower, shedding 157.86 points, or 0.13 per cent, to settle at 121,641.

“Stocks closed lower after reports of IMF’s strict compliance demands on agriculture tax and tax collection measures opposing provincial energy subsidies,” said Ahsan Mehanti, CEO of Arif Habib Capital.

He added that expectations of higher taxes on banking and saving scheme incomes, increased petroleum levies in the upcoming Federal Budget FY26, rupee instability, and dismal export data — with May 2025 exports contracting by 10 per cent year-on-year — also contributed to the bearish close.

In economic developments, the government signed a USD 300 million loan agreement with the Asian Development Bank (ADB) for Subprogramme-II.

Meanwhile, the prime minister called for a strategy to expand rail connectivity with Central Asia. On the fiscal front, the federal government’s total debt stock rose to Rs74.9 trillion during the first 10 months of FY25, driven by heavy borrowing to finance the budget deficit, according to Al Habib Capital.

“The benchmark index closed on a negative note after marking a new all-time intraday high, as volatility persisted ahead of the FY26 budget. Overall sentiment remained upbeat, with selective buying and active participation reflecting continued investor interest,” said analysts at Ismail Iqbal Securities.