PSX Plunges as Political and Economic Uncertainty Weighs Heavy

Pakistan Stock Exchange Index

The KSE-100 index of the Pakistan Stock Exchange (PSX) fell by more than 3.4%, or around 1,348 points, during intraday session.

The KSE-100 Shares Index, the industry standard for the nation’s capital market, dropped 1,378.54 points, or roughly 3.47%, to close at 38,342.22 points.

Due to the rise in political unrest and the country’s economic collapse, the market kept falling sharply for a second day in a row.

Despite government pressure, Pakistan’s financial management have found it extremely difficult to restart the programme due to the IMF’s “strict conditions.”

The State Bank of Pakistan has less than $5 billion in foreign exchange reserves, which is just enough to cover three weeks’ worth of imports.

Market analysts claim that the dissolution of the Punjab Assembly, the nation’s present unrest, the Pakistan Tehreek-e-(PTI) Insaf’s repeated call for quick elections, and other factors contributed to this panic-driven selloff.

The International Monetary Fund’s (IMF) credit program’s delayed reactivation and the nation’s ongoing political unrest were the primary causes of the stock market meltdown.

Also Read: KSE-100 Crash Halts Trading at Pakistan Stock Exchange

On Monday, the PSX lost more than 600 points as the market responded to political unpredictability.

As political and economic situations deteriorated, the index fell below 40,000 points.

The Punjab assembly’s dissolution and the municipal elections in Sindh harmed the environment for investments.

Additionally, rupee devaluation versus the US dollar and the postponement of the ninth IMF programme review alarmed investors.