KARACHI: The loan programme of the International Monetary Fund (IMF) didn’t resume yet. Pakistan’s reserves dropped to a 9-year low, impacting PSX and local currency with the situation impacting Pakistan Stock Exchange and local currency.
The US dollar appreciated by Rs7.03 to reach Rs269.63, after closing at Rs262.60 in the previous week on January 27th.
The US dollar traded at Rs 272 in the open market. In just three days, the dollar appreciated by 39 rupees in the interbank market and 30 rupees in the open market.
“There is a lot of panic in the market. If dollars are received, it will calm down,” said Zafar Paracha, the General Secretary of Ecap.
He criticized the government for delaying the decision to remove the unofficial cap on the exchange rate, which he says has worsened the situation.
The KSE-100 index declined by 580 points, closing at 39,871.27 points, a decrease of 1.43%.
The CEO of Arif Habib Commodities, Ahsan Mehanti, linked the drop to the upcoming Pak-IMF talks, where taxes on energy and commodities are expected to be increased to deal with circular debt issues.
The situation is causing a loss of investor trust and the fluctuation in the greenback price is also contributing to the decline of the KSE-100 index.
Mehanti stated that fears of investors have surged due to the fall in textile exports, with predictions of further decline in profits.
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