The Pakistan Stock Exchange (PSX) on Monday morning saw a significant drop of 685 points amid political uncertainty following the Pakistan Tehreek-e-Insaf’s (PTI) landslide victory in the Punjab by-polls.
The KSE-100 index fell below the 4200 mark, trading at 41,389 points.
The forex market was also impacted by the unrest, with the US dollar reaching an all-time high against the Pakistani rupee in the interbank market.
According to forex dealers, the dollar gained value by Rs3.79 against the rupee in the interbank and traded at Rs214.74. In the open market, the greenback traded between Rs215 and Rs216.
It is pertinent to mention here that Pakistan Tehreek-e-Insaf (PTI) has emerged victorious in the majority of the seats in the crucial by-polls on the 20 Punjab Assembly seats.
The gaining of value by the dollar and PTI’s success in the Punjab by-polls are likely to have a positive impact on the economy of Pakistan.
The Pakistan Stock Exchange (PSX) reacted favourably last week when the International Monetary Fund (IMF) and Pakistan reached a staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).
A statement issued by the Fund said that the agreement is subject to approval by the IMF’s Executive Board.
“Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$7 billion.”