Less economic forecasts from the International Monetary Fund (IMF), after reducing the investor’s confidence, broke the four -day rally, breaking the market pace on Wednesday, increasing a sales race.
Pakistan Stock Exchange (PSX) benchmark KSE -100 index closed at 117,226.14, 1,204.21 points or 1.02% below the previous close of 118,430.35. The index touched a higher high of 118,811.24 and a low of 117,120.39.
The trading volume was on 242.5 million shares, with a total value of traded shares recorded at Rs 18.6 billion.
The traders moved to the egg peel throughout the session, along with the country’s economic approach, and also became concerned about the possibility of further pressure on the currency.
Topline securities, a brokerage, said in a note that after the speed of rapid pace after four consecutive sessions, the bear today made a tremendous comeback on the local boors.
Brokerage said, “This reversal in the spirit can be attributed to a large extent to increase regional geopolitical stresses, which inspired investors to take a vigilant stance and lock in recent benefits.”
In the bottom of the index, in the trajectory, the United Bank Limited (UBL), Hub Power Company (HUBC), Habib Metro Bank (HMB), Mari Petroleum Company (MAI), and Engro Corporation Limited (Engro) were greatly influenced by negative contributions, including negative contribution from major shares, including Limited (Engro), which pulls down the index up to 526 points.
Despite the decline, the investor’s participation remained strong, with the total business volume to 604 million shares and the market turnover amount increased to Rs 27.7 billion. Bank of Punjab (BOP) led the volume chart, with 58 million shares of changing hands.
In its latest world economic perspective, the IMF raised Pakistan’s development forecast for the current financial year from 3% to 2.6%, citing slow-to-intake recovery.
According to Bloomberg, by joining the vigilant mood, the fitch rating said that Pakistan is likely to weaken the rupee gradually, as economic activity increases, as economic activity increases.
The revised forecast of the IMF follows the fresh American tariff hike by US President Donald Trump up to 29%, leading to the IMF cutting the evidence of development for many developing economies.
However, the report states that Pakistan’s GDP growth for the next financial year (2025–26) is estimated to increase by 3.6%.
Inflation in Pakistan, which was 23.4% in 2024, forecast at 5.1% for the current financial year, the IMF introduced it to grow up to 7.7% in the next financial year.
The IMF also amended its forecast for Pakistan’s current account deficit. It is now expected that the deficit is expected to stand at 0.1% of the GDP, compared to the earlier estimate of 1%. In nominal words, the current account interval is expected to be only $ 400 million instead of an already estimated $ 3.7 billion.
For 2026, the lender hopes that the current account deficit will increase by 0.4% of GDP.
Bloomberg, citing Chriszanis crustins, director of the Asia Pacific Sovereign Rating in Fitch, said: “The rating company saw the rupee falling by 285 by the end of June and weakened by 295 by the end of the next financial year in 2026.”
A decline of one rupee by Rs285 per US dollars in two months would mean a decline of 1.5% from the current interbank rate of Rs280.76. If it falls further to 295 by June 2026, it will be 5% depreciation from today’s rate.
“Pakistan’s central bank will gradually allow the rupee to weaken to manage pressure on the current account,” Bloomberg’s report said, as the speed of the economy increases. “
