Tough IMF conditions push Pakistan stock exchange down 816 points

KARACHI (92 News) – The Pakistan stock exchange (PSX) plunged a massive 816 points on Monday, a day after the government announced $6 billion International Monetary Fund (IMF) bailout package, with the benchmark KSE 100 losing 2.3 per cent during intra-day trading and cementing fears that investor sentiments remain bleakly uncertain. It is worth mentioning here that a day earlier government announced a $6 billion IMF bailout package. For a few minutes when trading opened, all seemed well with upwards activity and a move into the green zone by more than 500 points before the PSX experienced one of the bourse’s worst bearish spells, pushing the index to close below 34,000 points. It was reported that this occurred due to concerns of tough conditions attached with the IMF bailout package, leading to heavy sell-offs in the market that pushed the index to close at 33,900 points. Some experts do believe that the agreement will boost the confidence of investors and end the long prevailing uncertainty from nine months of IMF negotiations. Others say the bearish rule at the PSX is here to stay. Abdul Hafeez Shaikh also said that the bailout package will be given within 39 months time. He also explained that the federal government approved the bailout package, however, now the IMF board will have to give the approval. “Pakistan is awaiting the decision of IMF, he added. The adviser mentioned that the positive message would be prevailed worldwide and other financial institution will also provide two to three billion dollars. He also announced that this bailout package of Pakistan would be final package with the IMF. “The removal of subsidy to the rich people will prove in the country’s interest,” he said. Abdul Hafeez also said that the amount for the Ehsas Programme would be doubled as 180 billion rupees. He said that 75 per cent electricity consumers of the country utilized less than 300 units, however, they will not be loaded the burden of hike in prices of electricity.