PTBP Web Desk
The Pakistan Stock Exchange (PSX) began the week on a turbulent note as the KSE-100 Index swung sharply in both directions before ending the session in the red. Despite a strong start that lifted the index to an intra-day high of 158,850.34 points, the second half of the session saw heavy selling pressure. By the closing bell, the benchmark KSE-100 settled at 157,554.66, marking a decline of 482.71 points or 0.31%.
Market analysts described the movement as a reflection of investor caution ahead of crucial economic events, both domestically and internationally.
A key factor shaping investor sentiment is the upcoming International Monetary Fund (IMF) review. An IMF team is scheduled to arrive in Pakistan on September 25, 2025, for the second semi-annual review of the $7-billion Extended Fund Facility (EFF).
According to Topline Securities, Pakistan is expected to meet all seven Quantitative Performance Criteria (QPCs) for the March and June 2025 quarters. These criteria include critical indicators such as net international reserves, fiscal balance, and SWAP positions. Meeting these conditions is vital for the release of the next tranche of IMF funds, which could help stabilize Pakistan’s foreign exchange reserves and boost investor confidence.
Learn more about IMF Extended Fund Facility (External Link).
The pullback on Monday followed a strong rally the previous week, when the PSX surged 3,597 points (2.3%) to close at 158,037.37. The rally was driven by optimism over improving economic indicators and expectations of continued foreign inflows.
During that period, the benchmark index touched a weekly high of 159,337 points, one of the strongest levels of the year. The upward momentum was fueled by domestic factors such as controlled inflation and external triggers including positive cues from global markets.
See related: Pakistan’s economic reforms impact on markets.
The PSX’s performance was also influenced by global market activity. On Monday, Asian equities saw mixed results while the US dollar steadied as investors assessed the US Federal Reserve’s monetary policy following a rate cut last week.
- Tokyo’s Nikkei Index rose 1.3%.
- Taiwan’s stock market gained over 1%, hitting a record high.
- The MSCI Asia-Pacific Index (excluding Japan) was up 0.1%.
Meanwhile, US stock futures slipped slightly, with the S&P 500 futures down 0.1%, and European futures pointed to a subdued open.
Another development weighing on regional sentiment was the Trump administration’s crackdown on worker visas. On Friday, Washington announced a new requirement for companies to pay $100,000 for new H-1B visas, a move that directly impacts the tech industry.
India’s benchmark index fell in response, as the country’s $283 billion IT sector, heavily reliant on skilled visas for operations in the US, faces uncertainty. With over half of its revenues tied to the American market, India’s IT sector is bracing for significant short-term challenges.
The move is also expected to ripple across Asia, potentially impacting outsourcing contracts and cross-border employment opportunities, particularly for Indian and Chinese professionals.
Market experts believe that while the IMF review is a near-term challenge for Pakistan, successful completion could provide a much-needed confidence boost to both local and foreign investors. However, geopolitical uncertainties, global monetary policy shifts, and trade disruptions will continue to pose risks.
For now, investors at the PSX are likely to tread cautiously until clearer signals emerge regarding the IMF’s stance and the outcome of ongoing global developments.
