Arif Habib, founder and CEO of Arif Habib Corporation Ltd., expects the government to reduce the super tax in the upcoming federal budget for fiscal year 2025–26.
Speaking to reporters at the Pakistan Stock Exchange (PSX) on Monday, Habib said Prime Minister Shehbaz Sharif has recently assured business leaders that the budget will include relief measures for both industry and the salaried class. “I think we can also expect a reduction in the super tax in particular,” he added. The budget is scheduled to be presented on June 2.
Habib also commented on the broader economic and market outlook, noting that investor sentiment has improved sharply following a series of favourable developments. These include the International Monetary Fund’s approval of a $1 billion loan disbursement, expectations of monetary easing, and a ceasefire agreement with India.
The benchmark KSE-100 Index surged nearly 10,000 points during Monday’s session, driven by optimism around the IMF programme and de-escalation in regional tensions.
“Pakistan has received a string of positive news,” Habib said. “This momentum has reaffirmed that Pakistan is moving forward economically and is showing the world its resilience.”
Commenting on recent border tensions, Habib said India had “wrongly accused” Pakistan over a deadly attack in Indian Kashmir, leading to domestic political backlash in New Delhi. “On the other hand, Pakistan has emerged as a hero,” he claimed.
Over the weekend, Pakistan and India agreed to a ceasefire following four days of military exchanges. US President Donald Trump confirmed the agreement and expressed willingness to mediate between the two countries on the Kashmir issue.
