Significant swings occurred today on the Pakistan Stock Exchange (PSX), as the KSE-100 Index showed erratic trading conditions.
The KSE-100 Index increased by 100 points to reach 75,620 points as the market began trading positively. The index later fell by 170 points, settling at 75,345 points, indicating that the rising impetus was fleeting.
An major decline in the index resulted from the market’s inability to maintain its early optimism. Experts blame a mix of outside economic causes and market speculation for this volatility.
Concurrently, there was a minor depreciation of the US dollar in relation to the Pakistani rupee in the interbank market. At Rs278.20, the dollar was sold, indicating a 10-paisa decline. In the days ahead, this depreciation may have an even greater impact on market movements given the persistent economic difficulties.
These patterns are observed by the market at a time when the International Monetary Fund (IMF) predicts that Pakistan’s trade deficit will rise significantly in the upcoming fiscal year, indicating difficulties for the nation’s economic stability. Pakistan’s imports and exports are expected to rise in the upcoming fiscal year, according to the Fund.
Pakistan’s trade imbalance is expected to increase by about $4.165 billion, based on forecasts from the IMF. According to sources, there could be a significant increase in both imports and exports in the upcoming fiscal year, meaning that the total trade deficit could exceed $27.92 billion.
