Tax reform budget, but no respite in deficits

News Image

MG News | June 11, 2019 at 11:50 PM GMT+05:00

0:00

Penned by: Muzzammil Aslam

The budget is technically expansionary compared to previous budgets. The deficit is projected at 7.1% of GDP.

Government is expected to spend over Rs2,800 Billion in debt servicing and transfer of Rs3,200bn plus to provinces.

The taxes are likely to recover from tax exemptions from previous years, some revival in salary taxation, mobile cards and higher FED on products.

As highlighted month ago there were 4 unknowns (including devaluation, Policy Rate, FATF & Budget) and with the presentation of budget, all unknown are known now. This means uncertainty is behind us.

Despite tax loaded budget, and obviously some sectors will be affected, we believe, the impact on stock market by and large lower than the initially anticipated. No imposition of further GST, keeping intact the corporate taxes and super taxes are all positives.

Market has priced in aggressive tax measures compared to actual budget. Therefore, in my view, market will enter into the phase of certainty. Higher tax on fixed income will lure investors towards equities.

Now what to watch?
1) opposition move against budget,
2) lawyers movement,
3) IMF Executive Board approval
 

Copyright Mettis Link News

The opinions in this article are the author’s and do not necessarily represent the views of Mettis Link News (MLN).

Related News

Name Price/Vol %Chg/NChg
KSE100 138,597.36
256.32M
-0.05%
-68.14
ALLSHR 85,286.16
608.38M
-0.48%
-413.35
KSE30 42,340.81
77.13M
-0.03%
-12.33
KMI30 193,554.51
76.19M
-0.83%
-1627.52
KMIALLSHR 55,946.05
305.11M
-0.79%
-443.10
BKTi 38,197.97
16.53M
-0.59%
-225.01
OGTi 27,457.35
6.73M
-0.94%
-260.91
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 117,670.00 121,165.00
117,035.00
-1620.00
-1.36%
BRENT CRUDE 69.23 70.77
69.14
-0.29
-0.42%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
2.20
2.33%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.50
-0.30
-0.29%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.03 67.54
65.93
-0.20
-0.30%
SUGAR #11 WORLD 16.79 17.02
16.71
0.05
0.30%

Chart of the Day


Latest News
July 18, 2025 at 07:21 PM GMT+05:00

Pakistan strengthens UK trade links


July 18, 2025 at 05:36 PM GMT+05:00

Pakistan, China set to advance agricultural innovation


July 18, 2025 at 05:10 PM GMT+05:00

PSX Closing Bell: Riding High, Ending Low



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg