PSX Shares Fall 600 Points: Budget Delay Impact
Pakistan Stock Exchange Sees Decline Amid Budget Uncertainty
updated May 26, 2025
The pakistan Stock Exchange (PSX) experienced a downturn Monday, with shares falling more than 600 points during intraday trading. The benchmark KSE-100 index dropped 886.10 points, a 0.74% decrease, settling at 118,216.57.
Analysts attribute this decline in the Pakistan stock exchange to several factors, including delays in the budget proclamation and a lack of clarity regarding the International Monetary Fund (IMF) conditions. Thes uncertainties are prompting investors to reduce their market exposure.
Mohammed Sohail, chief executive of Topline Securities, noted that the budget delay and IMF concerns are key drivers. yousuf M. Farooq, director research at Chase Securities, added that the market is consolidating before the budget, with the oil sector facing pressure due to disagreements with the IMF over circular debt resolution.
Awais Ashraf, director research at AKD Securities, highlighted concerns about delayed circular debt payments and potential tariff rationalization in the upcoming budget. However, he also pointed out a positive aspect: the reduction in the primary surplus target to 1.6% of GDP, which may allow the government to avoid imposing harsh new taxes.
“The market is consolidating ahead of the budget, with pressure on the oil sector following media reports of disagreements with the IMF over the circular debt resolution plan and the onset of rollover week.”
Despite the current market jitters, Farooq anticipates a positive rerating once the key budgetary measures become clear.Ashraf expects a more people-centric budget, focusing on extensive tax reforms initiated under the IMF program.
What’s next
Investors are closely watching for the budget announcement, now scheduled for June 10, and any further developments regarding negotiations with the IMF.Clarity on these fronts is expected to influence future market trends.