During intraday trade, the KSE-100 index of the Pakistan Stock Exchange (PSX) slumped by over 3.4%, approximately 1,348 points.
The benchmark of the country’s capital market, the KSE-100 Shares Index, shed 1,378.54 points, or approximately 3.47%, to close at 38,342.22 points.
The market continued its sharp decline for the second day in a row due to the escalation of political tensions and the collapse of the nation’s economy.
The IMF’s “tough requirements” have made it nearly impossible for Pakistan’s financial managers to relaunch the program, despite pressure from the government.
The State Bank of Pakistan’s FX reserves is below $5 billion, enough for three weeks of import, making investors nervous.
According to market analysts, the Punjab Assembly’s dissolution and the country’s current instability, coupled with the Pakistan Tehreek-e-(PTI) Insaf’s persistent demand for fast elections, triggered this panic-driven selloff.
The stock market crash was triggered by the delay in the reactivation of the International Monetary Fund’s (IMF) lending program and the continuous political instability in the country.
The PSX fell over 600 points on Monday as the market reacted to political uncertainty.
The index dropped below 40,000 points amid deteriorating political and economic conditions.
The Punjab assembly dissolution and Sindh local body elections damaged the investment climate.
Investors were also concerned about monetary policy rate hikes, rupee depreciation against the US currency, and the ninth IMF program review delay.
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