PSX plunges over 1000 points amid political, economic uncertainty

KARACHI: The Pakistan Stock Exchange (PSX) fell for the second consecutive day on Tuesday as the KSE-100 index shed more than 1000 points owing to growing political and economic uncertainty, ARY News reported.

The market began its slide soon after opening at 39,814 points, with the benchmark KSE-100 index down 1156 points by 3:20pm.

Financial experts attributed the market’s erratic behaviour to recent developments taking place on the country’s political and economic fronts.

According to experts, the index fell due to fear of the dissolution of Punjab and Khyber Pakhtunkhwa assemblies and rising political confrontations which had damaged investor confidence.

Political uncertainty

The opposition parties, Pakistan Muslim League Nawaz (PML-N) and Pakistan People’s Party (PPP), late Monday submitted no-trust motion against Punjab Chief Minister Pervaiz Elahi, PA Speaker Sibtain Khan and Deputy Speaker Wasiq Qayyum Abbasi.

The Pakistan Democratic Movement (PDM) parties made their political move to stop the dissolution of the Punjab Assembly after Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan announced to dissolve the provincial assemblies on December 23.

Soon after the no-confidence motion was submitted, Governor Punjab Baligh ur Rehman directed Chief Minister (CM) Chaudhry Pervaiz Elahi to seek a vote of confidence from Punjab Assembly on December 21.

Economic woes

It emerged that the IMF has expressed ‘dissatisfaction’ over the policies of Ishaq Dar and presented more demands in front of Pakistan for the continuation of the current $7bn Extended Fund Facility (EFF) programme.

Sources having knowledge of the issue said that the IMF has asked Pakistan to increase the levy on diesel in January and February after which the govt has decided not to provide ‘full’ relief of downing prices of diesel in the international market to the masses.