Monitoring Desk
Stocks at the Pakistan Stock Exchange (PSX) came under sharp selling pressure on Monday, with the benchmark KSE-100 index plunging by over 800 points in intraday trade amid mounting concerns over the delayed federal budget and ongoing ambiguity in talks with the International Monetary Fund (IMF).
By 1:13pm, the index had dropped 886.10 points, or 0.74 per cent, to 118,216.57, down from the previous close of 119,102.67.
Market analysts pointed to investor unease as budget announcement uncertainties deepened. “The delay in the budget announcement and lack of clarity on IMF conditions related to fiscal measures are driving investors to trim their positions,” said Mohammed Sohail, CEO of Topline Securities.
Yousuf M. Farooq, Director of Research at Chase Securities, said the market was consolidating ahead of the budget. “There’s also pressure on the oil sector following media reports of disagreements with the IMF over the circular debt resolution plan,” he added. The beginning of rollover week has further contributed to the selling pressure.
Investor sentiment, already fragile, has weakened further as the federal budget—initially scheduled for June 2—has now been postponed to June 10. The delay is reportedly due to inconclusive talks with the IMF on taxation and fiscal reforms, with the visiting IMF mission holding multiple rounds of discussions, including a wrap-up session with Finance Minister Muhammad Aurangzeb.
The downtrend follows a strong rally last week when the KSE-100 surged by 12,474 points, driven largely by optimism over a US-brokered ceasefire between two nuclear-armed neighbors. However, that momentum has fizzled amid policy uncertainty, with most investors now preferring to stay on the sidelines until there is clarity on the 2025-26 budget.
