Karachi, January 9, 2025 – The Pakistan Stock Exchange (PSX) experienced a steep decline on Thursday, as the benchmark KSE-100 index plunged by 1,510 points. The market closed at 112,688 points, down from the previous day’s closing of 114,148 points. This significant drop came after the government announced its decision not to provide any tax relief under the newly introduced Tax Laws (Amendment) Bill, 2024.
Market analysts noted that investor sentiment at the PSX was dampened by the government’s refusal to ease restrictions imposed by the Tax Laws (Amendment) Bill, 2024. The lack of concessions has left many investors apprehensive about the near-term economic outlook.
The sell-off intensified following Prime Minister Shehbaz Sharif’s visit to the PSX a day earlier, accompanied by Finance Minister Muhammad Aurangzeb. During his address at the PSX, the prime minister clarified that the current economic conditions, coupled with commitments under the International Monetary Fund (IMF) program, made it impossible to extend any tax relief.
The PSX’s decline was broad-based, with significant selling pressure observed across key sectors, including automobile assemblers, cement manufacturers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation firms. Major index-heavy stocks such as HUBCO, NRL, MARI, PSO, SSGC, SNGP, MCB, MEBL, NBP, and UBL all ended the day in negative territory.
“The market lacks fresh positive triggers and continues to face uncertainties, particularly on the political front,” stated Intermarket Securities in a research note. The firm added that the PSX is also closely monitoring international developments, including the stance of the incoming US administration, some members of which have raised concerns over the imprisonment of former Prime Minister Imran Khan.
The sharp decline at the PSX underscores the fragile investor confidence amid mounting economic and political challenges. Market participants are bracing for further volatility as Pakistan navigates through these turbulent times, with limited prospects for immediate relief. For the PSX to regain momentum, analysts suggest that clear economic policies and improved political stability will be essential.
Despite the downturn, the PSX remains a barometer of investor sentiment and continues to reflect the pressing challenges facing Pakistan’s economy.