Sunday, May 29, 2022

PSX bloodbath: KSE-100 index plunges over 1000 points amid economic woes

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KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday witnessed massive selling pressure as the benchmark KSE-100 index shed more than 1000 points owing to growing uncertainty over talks with International Monetary Fund (IMF) for the release of US$1 billion tranche, ARY News reported.

The market began its slide soon after opening at 42,463 points, with the benchmark KSE-100 index down 1041 points by 2:30pm.

The Pakistani rupee also continued to decline against US dollar amid lingering talks with International Monetary Fund (IMF).

RUPEE DECLINE CONTINUES AGAINST US DOLLAR

According to forex dealers, the US dollar continued gaining against the Pakistani rupee as the value of the greenback surged by Rs1.34 in early trade.

The US dollar currently trading at Rs190, hitting an all-time high. The domestic currency also lost ground in the open market and traded above Rs190 in the open market.

The dollar has appreciated by Rs3.48 in the interbank market after Eid.

Read More: No fresh borrowings from SBP, clarifies finance ministry

According to experts, the surging dollar has shattered the confidence of rupee-based economy and its stakeholders.

The gloomy macros will continue to put pressure on the local unit, they said.

Economic woes

PML-N bigwigs including Prime Minister Shehbaz are in London to attend an urgent meeting of PML-N summoned by party supremo Nawaz Sharif over the country’s financial situation and other political matters.

AWAZ SHARIF SUMMONS PML-N MEETING TO DISCUSS COUNTRY’S OVERALL SITUATION

It is worth mentioning here that the coalition government, led by PM Shehbaz Sharif, is facing several economic challenges since coming into power back in April 2022 after Imran Khan was dethroned as Pakistan PM through a no-confidence motion.

The new coalition setup, since then, has approached International Monetary Fund (IMF) and Saudi government for bailout packages. The federal government recently also held talks with UAE economic team in Lahore for “financial support”.

Read more: IMF TALKS: PSX OPENS IN RED, SHEDS 1607 POINTS

It is learnt that Finance Minister Miftah Ismail agreed with International Monetary Funds’ (IMF) recommendations to reduce fuel subsidies phase-wise.

Miftah Ismail held a meeting with the executive directors of the Fund in Washington last month for the revival of the Extended Fund Facility (EFF) programme.

According to sources, talks between Pakistan and the International Monetary Fund (IMF) could begin on 18 May in Qatar.

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