The Pakistan Stock Exchange (PSX) witnessed a sharp decline as the benchmark KSE-100 index dropped over 950 points just a day after the new cabinet took oath. The index experienced significant selling, falling to 64,801.70 points—a 1.45% decrease from the previous close of 65,755.31 points.
Despite an initial fall of over 1,000 points, the market slightly recovered later. Business journalist Afreen Mirza attributed the downturn to the new cabinet formation led by Prime Minister Shehbaz Sharif, particularly the appointment of Aurangzeb to a key position rumoured to be the finance ministry. This move, coupled with the uncertainty of upcoming IMF discussions, has unsettled investors.
The market had dipped slightly after peaking at over 66,100 points previously, as stakeholders assessed the implications of the new government’s economic strategies. Analyst Ahsan Mehanti pointed to global market trends and economic uncertainties as contributing factors, with upcoming monetary policies and IMF negotiations being particularly influential in the market’s performance.
