The Pakistan Stock Exchange (PSX) fell sharply on Monday, with the KSE-100 index losing 1,237.67 points, or 0.73%. The index closed at 167,752.40 amid heavy profit-taking by investors. The sell-off followed reports of discrepancies in Pakistan’s trade data, raising investor caution.
The International Monetary Fund (IMF) expressed concerns over mismatched trade figures reported by Pakistan Single Window (PSW) and Pakistan Revenue Automation Limited (PRAL). These discrepancies cast doubts on recent macroeconomic progress and put pressure on the market. Experts say this dip is temporary and confidence will likely return soon.
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Market analysts linked the decline to both domestic and geopolitical factors. M. Waqas Ghani of JS Global cited the widening trade deficit and IMF concerns as reasons for the pressure. However, he expects improved market sentiment once the next IMF funding is secured. Mohammed Awais Ashraf of AKD Securities noted SBP data shows no real cause for alarm.
Trading volumes fell to 1.27 billion shares from 1.57 billion the previous day, with a total value of Rs60.5 billion. Among 487 traded stocks, 108 closed higher, 348 lower, and 31 remained unchanged. The Bank of Punjab led volumes with 131.4 million shares, rising Rs0.96 to Rs34.46.
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Ahmed Sheraz, an equity trader, pointed to increased volatility caused by geopolitical tensions and Pakistan’s partial non-compliance with IMF targets. The IMF is seeking clarification on an $11 billion trade data gap over two years, which raised questions about the accuracy of official financial statistics.