Stock Market Declines as IMF Review Looms

Market Faces Uncertainty Amid IMF Concerns

The Stock Market Declines as IMF Review Looms, with investors facing uncertainty ahead of the upcoming International Monetary Fund (IMF) review. The Pakistan Stock Exchange (PSX) remained under pressure on Wednesday due to foreign outflows, economic instability, and real estate policy shifts.

The benchmark KSE-100 Index dropped 1,634.22 points (-1.46%), closing at 110,301.16 from its previous session’s 111,935.38. It reached an intraday high of 112,234.15 before falling to a session low of 109,405.53. Analysts linked the downturn to fiscal concerns and cautious investor sentiment.

Ahfaz Mustafa, CEO of Ismail Iqbal Securities, noted that markets remain volatile due to the IMF’s upcoming review. Additionally, Pakistan’s Federal Board of Revenue (FBR) recorded a Rs468 billion revenue shortfall for July–January FY25, collecting Rs6,496 billion against a target of Rs6,964 billion.

Market Faces Uncertainty Amid IMF Concerns Meanwhile, the Prime Minister’s Task Force on Housing finalized a relief package for the real estate sector. It proposed reducing property sales tax from 4% to 2% and cutting the buyer’s tax from 4% to 0.5%. While these incentives aim to boost investment, concerns remain over tax revenue and IMF negotiations.

Market Faces Uncertainty Amid IMF Concerns Pakistan’s total public debt surged to Rs71.2 trillion in FY24, rising 13% from Rs62.8 trillion in FY23. Domestic debt reached Rs47.16 trillion, while external debt stood at Rs24.08 trillion. Financial stability concerns persist.

The Stock Market Declines as IMF Review Looms, as investor sentiment remains fragile due to global trade tensions, falling crude oil prices, and policy uncertainty.

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