Pakistan’s stock market has witnessed mixed trends since the arrival of an International Monetary Fund (IMF) mission earlier this month. Investors have been trading cautiously as talks progress under the IMF’s $7 billion reform-oriented loan program. The KSE-100 index saw a 0.9% increase on Thursday, closing at 115,094.23 points, following three bearish sessions. Since March 3, the market has alternated between four bullish and four bearish runs, showing clear investor uncertainty.
Key concerns driving this volatility include reports of a Rs600 billion tax shortfall, unresolved circular debt issues, and potential IMF demands, such as hiking Pakistan’s tax-to-GDP ratio by taxing agriculture, real estate, and retail sectors. Recent measures like maintaining the interest rate at 12% have further unsettled investors, dampening expectations of rate cuts to boost economic growth.
Analysts suggest the IMF talks will directly influence sectors like energy, cement, and borrowing costs, affecting overall market sentiment. However, some experts believe recent fluctuations are merely profit-taking after significant market gains over the last two years.
As Pakistan awaits the outcome of these discussions, investors remain cautious, closely monitoring developments with the IMF.
