KARACHI: The Pakistan stock and currency markets on Monday closed on a bearish note amid worsening economic indicators, upcoming talks with the International Monetary Fund (IMF) and a global equity sell off, analysts and dealers said.
The benchmark KSE 100 index of the Pakistan Stock Exchange (PSX) lost over 1,500 points during trading, before closing at the 43,393.14 level after shedding 1,447.67 points, or 3.23 percent, as the bears took the benefit of economic uncertainty.
“Stocks fell across the board in the post earning season due to economic uncertainty,” Ahsan Mehanti, Chief Executive Officer at Arif Habib Corporation, told Arab News. “Slump in global equities, rupee instability, surge in national saving rates and uncertainty over approval of a $7.4 billion Saudi aid package sought by the government played a catalyst role in the bearish close.”
The government has increased the rates of national savings to between 0.96 percent and 2.5 percent on various instruments, effective from May 10, 2022.
Pakistan is expecting a generous package of up to $8 billion from Saudi Arabia to stabilize its foreign exchange reserves, continuously dwindling in the absence of major foreign inflows.
Analysts believe the completion of the 7th review of an IMF $6 billion extended facility would unlock additional funding not only from the lender but also from other multilateral lenders, including the World Bank and Asian Development Bank.
The currency market also witnessed a depressing trend during Monday’s trading, with the rupee losing its value by 0.48 percent to close at Rs187.53 against the United States Dollar in the interbank market.
“The rupee is under pressure due to the economic situation of the country,” Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), told Arab News.
“Country’s trade deficit is increasing, import bill is swelling, interest rates are on the higher side,” Paracha added. “The currency is expected to remain under pressure in the coming days in the absence of any major inflow.”
Paracha said an ongoing fuel subsidy was adding to the woes of the country and could delay the 7th review of the IMF’s loan program.
Earlier this year, former Prime Minister Imran Khan announced a $1.7 billion economic relief package to offset the impact of high inflation but the populist move was a deviation from IMF program conditions and stalled talks with the fund.
After the change of regime in Pakistan last month, the new finance minister, Miftah Ismail, held meetings with IMF officials in Washington and requested the global lender to extend the size and duration of the loan program.
Though the new Pakistan government agrees in principle that the relief package is a burden on the national exchequer, it has failed to withdraw the fuel subsidies announced by Khan.
An IMF delegation is due this month to negotiate a reform program and the subsidies with authorities. If Islamabad clears the review, Pakistan will get an estimated $1 billion, which could unlock additional external funding and help stabilize the market and the economy.
Pakistan equity, currency markets close on bearish note, stocks shed over 1,500 points
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Pakistan equity, currency markets close on bearish note, stocks shed over 1,500 points
- Benchmark KSE 100 index closes at 43,393.14 level after shedding 1,447.67 points or 3.23%
- Fall due to worsening economic indicators, upcoming talks with IMF, global equity sell off
Pakistan says responding to Afghan ‘offensive operations’ after border fire as tensions escalate
- Afghan Taliban spokesperson says “large-scale offensive operations” launched against Pakistani military bases
- Pakistan says Afghan forces opened “unprovoked” fire across multiple sectors along shared border
ISLAMABAD: Afghanistan’s Taliban authorities said on Thursday they had launched “large-scale offensive operations” against Pakistani military bases and installations, prompting Pakistan to say its forces were responding to what it described as unprovoked fire along the shared border.
The escalation follows Islamabad’s weekend airstrikes targeting what it said were Tehreek-e-Taliban Pakistan (TTP) and Daesh militant camps inside Afghanistan in response to a wave of recent bombings and attacks in Pakistan. Islamabad said the strikes killed over 100 militants, while Kabul said dozens of civilians were killed and condemned the attacks as a violation of its sovereignty.
In a post on social media platform X, Afghan government spokesperson Zabihullah Mujahid said Afghanistan had launched “large-scale offensive operations” in response to repeated violations by the Pakistani military.
Pakistan’s Ministry of Information said Afghan forces had initiated hostilities along multiple points of the frontier.
“Afghan Taliban regime unprovoked action along the Pakistan–Afghanistan border given an immediate, and effective response,” the ministry said in a statement.
The statement said Pakistani forces were targeting Taliban positions in the Chitral, Khyber, Mohmand, Kurram and Bajaur sectors, claiming heavy Afghan casualties and the destruction of multiple posts and equipment. It added that Pakistan would take all necessary measures to safeguard its territorial integrity and the security of its citizens.
Separately, security officials said Pakistani forces had carried out counterattacks in several border sectors.
“Pakistan’s security forces are giving a befitting reply to the unprovoked Afghan aggression with full force,” a security official said, declining to be named.
“The Pakistani security forces’ counter-attack destroyed Taliban’s hideouts and the Khawarij fled,” they added, referring to TTP militants.
The claims from both sides could not be independently verified.
Cross-border violence has intensified in recent weeks, with Pakistan blaming a surge in suicide bombings and militant attacks on militants it says are based in Afghanistan. Kabul denies providing safe havens to anti-Pakistan militant groups.
The clashes mark the third major escalation between the neighbors in less than a year. Similar Pakistani strikes last year triggered weeklong clashes before Qatar, Türkiye and other regional actors mediated a ceasefire in October.
The 2,600-kilometer (1,600-mile) frontier, a key trade and transit corridor linking Pakistan to landlocked Afghanistan and onward to Central Asia, has faced repeated closures amid tensions, disrupting commerce and humanitarian movement. Trade between the two nations has remained closed since October 2025.
