Karachi: The KSE-100 index saw a notable increase, climbing 383 points to close at 122,024, with a trading volume of 592 million shares. The rise comes as the government unveiled the Rs 17.6 trillion budget for FY26, a plan heavily influenced by International Monetary Fund conditions, which projects a $2.1 billion current account deficit for the fiscal year.

The day's top performers in terms of price change included PKGP, AGP, and NATF, while KEL, LUCK, and HUMNL experienced declines. Trading activity was most active in the refinery, cement, and power sectors.

The budget announcement includes several significant measures, such as granting tax authorities more power to target unregistered taxpayers and imposing a ban on key transactions by non-filers. The defense budget will see an increase, reaching Rs 2.557 trillion, while a massive tariff overhaul has been revealed.

In an effort to provide relief, the government has proposed tax cuts for the salaried class, a 4% increase in petroleum levy, and Rs 1 trillion allocated for the Public Sector Development Program (PSDP). Debt servicing will account for Rs 2 trillion of the budget, and a Rs 5 per liter carbon levy has been introduced.

The World Bank projects a 3.1% GDP growth, and new taxes are set to impact several sectors. A flat 5% tax on pension income and a 'digital levy' have been introduced, while property transfer taxes might see a withdrawal of 3% Federal Excise Duty (FED).

The oil and gas sector has reportedly made significant progress, and an 18% sales tax on vehicles up to 850cc has been proposed. The government has allocated Rs 400 billion for agriculture and livestock in FY26, signaling a strong focus on these sectors.

With these comprehensive fiscal measures, the government aims to balance economic growth with fiscal responsibility, although the impact on various industries and consumer behavior remains to be seen.