The Pakistan Stock Exchange (PSX) witnessed a significant decline on Monday, with the benchmark KSE-100 index dropping by 886.10 points, or 0.74%, to 118,216.57. The decline was attributed to the delay in the budget announcement and lack of clarity on International Monetary Fund (IMF) conditions related to the budget.
Market experts believe that investors are trimming their exposure due to uncertainty surrounding the budget. Mohammed Sohail, CEO of Topline Securities, said the delay in budget announcement and lack of clarity on IMF conditions are the main reasons for the decline. Yousuf M. Farooq, Director Research at Chase Securities, added that the market is consolidating ahead of the budget, with pressure on the oil sector due to disagreements with the IMF over the circular debt resolution plan.
The government has delayed unveiling the federal budget from June 2 to June 10 due to ongoing discussions with the IMF on taxation and fiscal measures. Informed sources said the IMF staff mission had multiple rounds of discussion with the government, including a wrap-up session with Finance Minister Muhammad Aurangzeb.
Despite a significant recovery in the previous week, the PSX faltered due to lackluster conditions, with investors preferring to remain on the sidelines before the announcement of the budget 2025-26. Experts expect a rerating to the upside once there is clarity on key budgetary measures.
Meta AI response: Pakistan Stock Exchange Plunges Amid Budget Uncertainty The Pakistan Stock Exchange (PSX) witnessed a significant decline on Monday, with the benchmark KSE-100 index dropping by 886.10 points, or 0.74%, to 118,216.57. The decline was attributed to the delay in the budget announcement and lack of clarity on International Monetary Fund (IMF) conditions related to the budget. Market experts believe that investors are trimming their exposure due to uncertainty surrounding the budget. Mohammed Sohail, CEO of Topline Securities, said the delay in budget announcement and lack of clarity on IMF conditions are the main reasons for the decline. Yousuf M. Farooq, Director Research at Chase Securities, added that the market is consolidating ahead of the budget, with pressure on the oil sector due to disagreements with the IMF over the circular debt resolution plan. The government has delayed unveiling the federal budget from June 2 to June 10 due to ongoing discussions with the IMF on taxation and fiscal measures. Informed sources said the IMF staff mission had multiple rounds of discussion with the government, including a wrap-up session with Finance Minister Muhammad Aurangzeb. Despite a significant recovery in the previous week, the PSX faltered due to lackluster conditions, with investors preferring to remain on the sidelines before the announcement of the budget 2025-26. Experts expect a rerating to the upside once there is clarity on key budgetary measures.