- PSX plunges 1,634 points, farm at 110,301.16.
- The lowering feeling persists while the index strikes 109,405 low.
- KSE -100 sees -1.46% a drop after brief intraday gains.
The stock market was under pressure on Wednesday, investors cautiously reacting to the examination of imminent international monetary funds (IMF) and concerns about income gaps.
The market fought for management, faced with foreign outings, global economic uncertainties and political developments in the real estate sector.
Pakistan Stock Exchange (PSX) index plunged 1,634.22 points (-1.46%), closing at 110,301.16, down from 111,935.38 of the previous session.
The index reached an intraday summit of 112,234.15 before switching to a minimum session of 109,405.53.
Market analysts have attributed the deaf feeling to the next IMF review, which should start later this month.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, addressing Geo.tv said: “The markets are under pressure due to the next IMF review.”
“There is a tax deficit which must be processed, and the incentives provided to the real estate sector make people cautious because this can complicate the exam,” he said.
The Federal Board of Return (FBR) faces a massive income deficit of 468 billion rupees for the first seven months (July-January) of 25 FY, collecting 6,496 billion rupees compared to a target of 6,964 billion rupees.
The deficit widened by 84 billion rupees in January 2025, the FBR collects 872 billion rupees, going down the target of 956 billion rupees. Although the tax authority has reached an increase of 29% per month, it remains significantly to the subject of IMF objectives, which raises concerns concerning the additional potential tax measures.
Meanwhile, the Prime Minister’s working group on housing has finalized a rescue set for the real estate sector, offering tax discounts for buyers and sellers in order to revitalize the sector.
The package includes reducing the real estate sales tax from 4% to 2%, reduction of the buyer’s tax from 4% to 0.5% and the elimination of federal expansion duties on real estate transactions. In addition, it offers tax exemptions for buyers of houses at first sight and increasing the construction limit of two -storey buildings on three floors.
Although these measures aim to stimulate real estate investments, they have also aroused concern about their impact on tax revenue and potential complications in IMF negotiations.
The debt report of the Ministry of Finance revealed that the total public debt of Pakistan had reached 71.2 Billions of rupees during the financial year 2010, increasing by 13% compared to RS62.8 Billion of RS23.
Despite efforts to control the debt trajectory, the government has not achieved the objectives of reducing public debt under the tax on tax liability and the limitation of debt.
The interior debt rose to Rs47.16 Billions, while the external debt, in terms of rupees, reached RS24.08 Billion. This growing charge of debt continues to put pressure on budgetary prospects, adding concerns about financial stability and Pakistan’s ability to respect the reforms exercised by the IMF.
The PSX extended the losses on Tuesday, while the climbing of global trade tensions, the fall in crude oil prices and the major foreign outings have attenuated the confidence of investors.
The KSE-100 reference index fell by 809.63 points (-0.72%), closing at 111,935.38 after reaching a summit of 113,649.07 and a minimum of 111,828.10 points.
Analysts noted that uncertainty about trade policies, associated with political instability and the volatility of the Ruel, contributed to the lowering feeling.