PSX witnesses negative trend amid uncertainty over IMF bailout package

KARACHI – The Pakistan Stock Exchange (PSX) on Friday witnessed a negative trend amid the uncertainty over the resumption of the International Monetary Fund (IMF) bailout package.

The benchmark KSE-100 Index was hovering at 39,993.37 level, a decrease of 382.73 points and a percentage decline of 0.95%.

Automobile, cement, chemical, banking, oil and fertiliser sectors were trading in red.

Earlier, Prime Minister Shehbaz Sharif announced the Rs100 fuel subsidy on fuel, a programme that some economists fear could hinder a crucial IMF pay out needed to prevent economic collapse.

IMF representative Esther Perez Ruiz said this the government did not consult the fund about the fuel pricing scheme.

She said the fund would ask the government for more details about the proposal, including how it will be implemented and what protection would be put in place to prevent abuse.

Last month, the MPC of the State Bank of Pakistan (SBP) raised the key interest rate by 300 basis points, taking it to 20%.