The government set a fiscal deficit target of 4 percent of gross domestic product against the government's aim of 5.1 percent for 200910.
ASAD IQBAL, CHIEF INVESTMENT OFFICER, FAYSAL ASSET MANAGEMENT
The capital gains tax imposed on stock market gains was expected and already discounted in the market.
The budget should allay a lot of fears in the market as the new reform of GST does not begin till October and the market for some time should revert back to fundamentals.
ASIF QURESHI, DIRECTOR AT INVISOR SECURITIES LTD
The main objective of the budget seems to be on fiscal consolidation, which is reflected in the lower fiscal deficit target of 4 percent as compared to 5.1 percent of the GDP the country expects to achieve in the outgoing year. This is a positive thing.
But it is yet to be seen if the government has taken the IMF on board on deferring the imposition of a value-added tax for three months, which it had promised to implement from July 1. There is no assurance provided whether they will introduce that after three months.
MOHAMMED SOHAIL, CHIEF EXECUTIVE OF TOPLINE SECURITIES LTD
The budget is an effort to consolidate the economic recovery achieved last year. Efforts have been made to increase taxes and control expenditure. However, the fiscal deficit target of 4 percent looks to be optimistic.
For the stock market, there is no major surprise and therefore it should have no major impact on share prices.
Copyright Reuters, 2010