ISLAMABAD: The Pakistan Stock Exchange (PSX) saw a significant decline of 1,200 points on Monday, currency traders and analysts said, attributing the slump to uncertainty over the outcome of Islamabad’s talks with the International Monetary Fund (IMF) for a $1 billion tranche.
The benchmark KSE-100 index dropped by 1,264.78 points, or 1.12 percent, to 111,986.88 points, compared to Friday’s close of 113,251.66.
The development came as an IMF team arrived in Pakistan for the first review of a $7 billion loan program Islamabad secured in September.
“Foreign outflows, weak rupee, lower global crude oil prices and uncertainty over outcome of Pakistan-IMF talks this week played a catalyst role in the bearish close,” Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News.
Pakistan’s ARY News channel reported that the IMF was demanding action against tax evasion in Pakistan’s real estate sector.
“The IMF pushed for action against those misdeclaring property values,” ARY News reported, saying the government had assured the global lender it would activate the Real Estate Regulatory Authority.
Naveed Nadeem, a senior equity trader at Topline Securities Limited, said the negative sentiment at the market was driven by the lack of a positive trigger, Engro earnings falling short of expectations and shorter trading hours.
“Key stocks contributing to the downturn included ENGROH, UBL, MCB, MTL, and PPL, which together accounted for a drop of 731 points in the index,” he said.
“Despite the downturn, overall market activity saw 207 million shares traded, with a total turnover of Rs 11.8 billion.”
Pakistan Stock Exchange sheds 1,200 points amid uncertainty over IMF loan talks
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Pakistan Stock Exchange sheds 1,200 points amid uncertainty over IMF loan talks
- The benchmark KSE-100 index closed at 111,986.88 and went down by 1.12 percent from the previous day’s close
- Analyst says foreign outflows, weak rupee, lower global crude prices played a catalyst role in bearish close
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.
