After the budget, the dollar became more expensive, the stock market also fell by more than 1000 points

In view of the uncertainty created after the budget for the new financial year and the new taxes imposed on it, the value of the dollar rose...

In view of the uncertainty created after the budget for the new financial year and the new taxes imposed on it, the value of the dollar rose by another Rs 85 paise, while the Pakistan Stock Exchange (PSX) also rose sharply. Faced with a recession where the 100 index fell more than a thousand points.

At the beginning of the business week, the value of the dollar rose by 85 paise in the interbank market, after which the dollar reached an all-time high of 204 rupees.

Malik Bostan, chairman of the Pakistan Forex Association, has linked the high flight of the dollar to the end of the current financial year. Are import bill payments.

Read more: The dollar reached a high of Rs 203 in the inter-market

He said that the pressure on the rupee could continue till the agreement with the IMF reaches the final stages, while there is a significant difference in the import and export targets set for the next financial year, which indicates that the future The year will also see the need to borrow more to reduce this gap.

According to Malik Bostan, dollar speculators are also active in the banking sector and he suggested that the rupee could be strengthened by banning dollar forward trading.

Currency dealer Zafar Paracha said that one of the reasons for the rise in the value of the dollar was that foreign companies were sending out their profits at the end of the financial year in June while exporters were not in the country due to high profits. Are bringing

Read more: Pakistan will need 41 41 billion in next 12 months: Finance Minister

He said that these activities have created a gap between the demand and supply of dollars, adding that the SBP should oblige exporters to bring export earnings into the country to increase the supply of dollars.

The stock market fell by more than 1000 points

The KSE-100 index, on the other hand, has seen a decline since the start of the first day of the business week, with analysts attributing the decline to the government's tax on the banking sector in the next fiscal budget.

According to the website of Pakistan Stock Exchange, the index decreased by 1,16.79 points or 2.42% till 3 o'clock, after which the 100 Index fell to 42,69.65 points.

At the start of trading, the index was down more than 300 points and by 11:25 the market had lost 718 or 1.71 percentage points.

During the last session, the 100 Index was trading at 42,015 points.

Raza Jaffery, head of research at Intermarket Security, said that the stock market is under pressure today due to the decline in shares of the banking sector, which is considered to be the largest sector of the banking index.

Read more: Budget 23-2022: 'Stock market has been better than expected'

"This is because of the significant increase in taxes on the sector, the abolition of taxes on credit and life insurance available in the mutual funds in the new budget, which has further raised concerns," he said.

Abba Ali Habib Securities Research Head Salman Naqvi said that the banking sector is witnessing a downward trend due to increase in taxes and this is having a clear effect on the market.

He said the government had included more taxes in the construction sector in the new budget, which was causing a shortage of shares in the cement and steel sectors.

Salman Naqvi linked the downturn to Finance Minister Muftah Ismail's statement that the International Monetary Fund (IMF) was unhappy.

In a post-budget news briefing, the finance minister, while talking about more tough decisions, hinted at ending income tax relief in the next budget and said that the IMF was not ready to end the demand for higher revenue.

Read more: Impact of Political Uncertainty on Stark Market, Decline of 1250 Points

Salman Naqvi said that it was surprising that otherwise the budget was not so bad that only KSC 100 Index fell and it was seen as 'neutral to positive'.

Ahsan Mohanty of Arif Habib Corporation also shared similar views, saying that the stock market was under pressure due to the increase in taxes on blue chip corporates, banking sector and reduction in taxes on common credit and pension shares in the budget. Is hunting

"Institutional sales on the global equity cell and the fall in global crude oil prices have played a key role in driving the bearish trend," he said.

In the budget for the next financial year, the government has increased the windfall gain tax from 39% to 42% for those banks which were earning safe returns due to heavy investment in public securities.

The stock market closed on a slightly positive note last week on rising crude oil prices and the possible resumption of the International Monetary Fund's debt program in the short term.