KARACHI – The Pakistan Stock Exchange (PSX) saw a significant decline on Thursday as investor sentiment weakened, driven by growing uncertainty surrounding the upcoming IMF review of Pakistan’s $7 billion Extended Fund Facility (EFF).
The KSE-100 index shed 6,682 points to drop to 172,170.29 points compared to previous close of 178,853.09 points.
The volatility comes a day after the stock marked recorded gains of more than 5,000 points.
On Wednesday, the benchmark index moved up by 5,702.68 points, a positive change of 3.29 percent, to close at 178,853.10 points.
During the session, the ready market recorded a trading volume of 697.682 million shares with a traded value of Rs 49.992 billion, against 716.035 million shares valuing Rs 40.471 billion in the previous session.
Meanwhile, it has emerged that electricity bills could soon jump as Pakistan pushes ahead with a sweeping tariff overhaul. The move, part of an IMF-backed programme to stabilise the country’s struggling power sector, promises relief for industries but threatens to hit middle- and lower-income families hardest.
As the South Asian nation is bracing for fresh electricity price shock, International Monetary Fund scrutinises a sweeping power tariff overhaul that could sharply raise household bills.
The global lender said it is holding discussions with Pakistan to determine whether the proposed tariff changes is in line with country’s bailout programme, and whether they could dent the economy, triggering inflation, with middle- and lower-income families expecting to bear the brunt.
The proposed shake-up comes as Islamabad races to meet conditions tied to its $7 billion Extended Fund Facility, a long-term IMF loan designed to tackle deep-rooted economic weaknesses. Analysts warn the plan could lift inflation even as it delivers long-sought relief to energy-hungry industries.
