Pakistan equities witnessed a panic-struck selling spree during the early hours of trade on Monday amid a severe economic crisis that has intensified since the new government came to power.

The benchmark KSE-100 Index appeared bearish from the opening bell and immediately dropped into the red zone after shedding 1,111 points during the first hour of intraday trade.

The Chief Executive Officer of investment firm Alpha Beta Core, Khurram Schehzad, told ProPakistani

PSX is down by about 1,000 points because of uncertainty surrounding the IMF program due to no adjustment in oil prices. The market expected the government to take a firm step over the weekend. Falling short of expectations, the government needs to move fast and take the markets and investors into confidence for future plans, otherwise, the outcomes could be scary. For instance, international rating agencies could soon downgrade their ratings for Pakistan’s economic indicators, potentially impacting its global bonds, interest rates, and debt-taking ability.

At 11:20 am, the market was down by 903 points or 2.08 percent, trading at 42,583 points. The investors opted to offload their position after the government decided to maintain fuel subsidies “for now”, defaulting on an overriding pre-condition set by the International Monetary Fund (IMF) for the resumption of its loan program.

The global lender had made the withdrawal of petroleum and electricity subsidies a condition for resuming its bailout program. Pakistan is expected to meet with the IMF mission in Doha on Wednesday for the next round of discussions to restart the loan program. If granted, the expected influx will help Pakistan close the gap in its foreign exchange reserves and strengthen its balance of payments.

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