KSE-100 index plunges 568 points due to delayed IMF review

The Pakistan Stock Exchange (PSX) witnessed a sluggish session during the intraday trading on Friday as a staff-level agreement with the International Monetary Fund (IMF) for the completion of the ninth review of a $7 billion loan programme was delayed.

When trading was stopped for Friday prayers, the benchmark KSE-100 index dropped 568.21 points, or 1.34 percent, to reach 41,898.38 points.

The delay, according to Mohammad Sohail, CEO of Topline Securities, has put pressure on the market.

"The KSE-100 has reversed some of this month's gains in early morning trade due to the delay in obtaining the staff-level agreement with the IMF," said Raza Jafri, Head of Equity at Intermarket Securities.

Finance Minister Ishaq Dar earlier on Friday stated that the International Monetary Fund (IMF) talks were completed "positively" and that in order for the government to get the loan programme, Rs170 billion in taxes must be imposed through a mini-budget.

In a release to the media, the finance minister acknowledged that the government had obtained a copy of the MEFP from the international lender.

The finance minister said that this was an old arrangement that had previously been delayed and suspended.