Web Desk – Karachi: The Pakistan Stock Exchange (PSX) opened lower on Friday as investors reacted to rising petrol prices and concerns over a potential policy rate hike amid escalating Middle East tensions.
The KSE-100 index fell 416.80 points, closing at 151,594.6 points, a decline of 0.27% from Thursday’s close of 152,011.26 points. Earlier in the session, the benchmark index had dropped over 3,000 points, touching 148,796 points.
Sources indicate that the International Monetary Fund (IMF) has urged the State Bank of Pakistan (SBP) to maintain a strict monetary policy amid the regional unrest, warning that inflation could spike due to the escalating Middle East situation.
The IMF emphasized that the central bank should respond decisively, including proportionate interest rate hikes, to counter rising inflation risks. The IMF also plans to closely monitor all upcoming monetary policy decisions by the SBP.
Market analysts noted that investor sentiment is under pressure due to a combination of domestic fuel price increases, global geopolitical uncertainty, and looming rate hike expectations, which could impact liquidity and capital inflows.
