In a major upset, the Pakistan Stock Exchange (PSX) has dropped at an alarming rate. The PSX has shed more than 1100 points on the first trading day of the week after the Eid-ul-Fitr holidays.
According to details, the KSE-100 index lost 1071 points during the early hours on the first day of the week and fell below the 44,000 mark. The PSX traded at 43,769 after the decline.
The dire situation has raised concern among investors. Moreover, economic experts believe that the market is under pressure due to the widening current and fiscal account deficit and the depleting foreign exchange reserves.
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Furthermore, debt repayment and the uncertainty surrounding the talks with the International Monetary Fund (IMF) for resuming the loan program have also kept the market on edge.
Meanwhile, the dollar was trading at Rs. 188.5 in the interbank at around noon on Monday as the rupee depreciated by Rs. 1.25, according to the Forex Association of Pakistan. The open market rate of the greenback was Rs. 187.8 at the same time. To clarify, the hike in dollar rates comes amid the oil import repayments.
#USD at Interbank trading at 187.76 gone up by Rs 1.12.
Bloodbath at #PSX
What are we heading to? #StockMarket #Dollar pic.twitter.com/rQrCxxPmaD— Usman Rao (@usmanrao_) May 9, 2022
PTI’s reaction to the market decline
Needless to say, the alarming situation of the market has resulted in backlash against the incumbent government.
Former Minister for Information and Broadcasting Fawad Chaudhry said that situation is not surprising.
“This situation should not come as a surprise when lolly-pop makers are appointed as the finance minister,” Fawad Chaudhry said while taking a dig at Finance Minister Miftah Ismail who owns a confectionery-making business.
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Former Minister for Planning Asad Umar too raised concern and called for early elections.
“Market falling again. Rupee continues to slide against the dollar. Complete paralysis of decision-making. How long can Pakistan bear the cost of uncertainty? What price the economy will pay before we realize elections are the only way out?” Asad Umar lamented.
جب لالی پاپ بنانیوالوں کو وزیر خزانہ لگائیں گے اور پوری معاشی پالیسی لالی پاپ دینا ہو گی تو یہ صورتحال کوئ بہت حیرت انگیز نہیں ہونی چاہئے #امپورٹڈ_حکومت_نامنظور https://t.co/bxkD8q8dT8
— Ch Fawad Hussain (@fawadchaudhry) May 9, 2022
Meanwhile, PTI spokesperson on finance Muzzammil Aslam claimed that the IMF has deferred a meeting with Pakistan authorities for the release of US $1 billion tranche until May 18 and is demanding a hike in petrol and diesel prices. Moreover, he also criticized the government.
“Issue with this government is legitimacy and duration. International donors and friendly countries never bail out a government with a split mandate. Secondly, no one is sure till what time government will last. Lastly, no policy and difference on economic policies withing PML-N and PDM partners not bodes well,” he tweeted.
Issue with this govt is legitimacy & duration. International donors & friendly countries never bailout govt with split mandate. Secondly, no one is sure till what time govt will last. Lastly, no policy and difference on economic policies within PMLN & PDM partners not bodes well https://t.co/9Go0tu8Tdk
— Muzzammil Aslam (@MuzzammilAslam3) May 9, 2022